The members of the House gave the pledge
of allegiance to the flag of the United States of America.

The roll was called and the following
members were present:

Albright

Allen

Anderson, P.

Anderson, S.

Anselmo

Applebaum

Bahr, C.

Baker

Barr, R.

Becker-Finn

Bennett

Bernardy

Bliss

Bly

Carlson, A.

Carlson, L.

Christensen

Clark

Considine

Cornish

Daniels

Davids

Davnie

Dean, M.

Dehn, R.

Dettmer

Drazkowski

Ecklund

Erickson

Fabian

Fenton

Fischer

Flanagan

Franke

Franson

Freiberg

Garofalo

Green

Grossell

Gruenhagen

Gunther

Haley

Hansen

Hausman

Heintzeman

Hertaus

Hilstrom

Hoppe

Hornstein

Hortman

Howe

Jessup

Johnson, B.

Johnson, C.

Johnson, S.

Jurgens

Kiel

Knoblach

Koegel

Koznick

Kresha

Kunesh-Podein

Layman

Lee

Lesch

Liebling

Lien

Lillie

Loeffler

Lohmer

Loon

Loonan

Lucero

Lueck

Mahoney

Marquart

Masin

Maye Quade

McDonald

Metsa

Moran

Murphy, E.

Murphy, M.

Nash

Nelson

Neu

Newberger

Nornes

O'Driscoll

Olson

Omar

O'Neill

Pelowski

Peppin

Petersburg

Peterson

Pierson

Pinto

Poppe

Poston

Pryor

Pugh

Quam

Rarick

Rosenthal

Runbeck

Sandstede

Sauke

Schomacker

Schultz

Slocum

Smith

Sundin

Swedzinski

Theis

Thissen

Torkelson

Uglem

Urdahl

Vogel

Wagenius

Ward

West

Whelan

Wills

Youakim

Zerwas

Spk. Daudt

A quorum was present.

Miller and Scott were excused.

Backer, Halverson and Mariani were excused
until 4:30 p.m.Hamilton was excused
until 4:45 p.m.

The Chief Clerk proceeded to read the
Journal of the preceding day.There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.

Journal
of the House - 35th Day - Tuesday, March 28, 2017 - Top of Page 2136

The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article.The
appropriations are from the outdoor heritage fund for the fiscal year indicated
for each purpose.The figures
"2018" and "2019" used in this article mean that the
appropriations listed under the figure are available for the fiscal year ending
June 30, 2018, and June 30, 2019, respectively.The "first year" is fiscal year 2018.The "second year" is fiscal year
2019.The "biennium" is fiscal
years 2018 and 2019, respectively.The
appropriations in this article are onetime appropriations.

APPROPRIATIONS

Available for the Year

Ending June 30

2018

2019

Sec. 2.OUTDOOR
HERITAGE FUND

Subdivision 1.Total
Appropriation

$102,605,000

$585,000

This appropriation is from the outdoor heritage
fund.The amounts that may be spent for
each purpose are specified in the following subdivisions.

Subd. 2.Prairies

26,614,000

-0-

(a)DNR
Wildlife Management Area and Scientific and Natural Area Acquisition - Phase
IX

$2,313,000 the first year is to the
commissioner of natural resources to acquire in fee and restore lands for
wildlife management purposes under Minnesota Statutes, section 86A.05,
subdivision 8, and to acquire land in fee for scientific and natural area
purposes under Minnesota Statutes, section 86A.05, subdivision 5.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquiring lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan.

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(b)
Accelerating the Wildlife Management Area Acquisition - Phase IX

$3,479,000 the first year is to the commissioner
of natural resources for an agreement with Pheasants Forever to acquire in fee
and restore lands for wildlife management area purposes under Minnesota
Statutes, section 86A.05, subdivision 8.Subject to evaluation criteria in Minnesota Rules, part 6136.0900,
priority must be given to acquiring lands that are eligible for the native
prairie bank under Minnesota Statutes, section 84.96, or lands adjacent to
protected native prairie.A list of
proposed land acquisitions must be provided as part of the required
accomplishment plan.

(c)Minnesota Prairie Recovery Project - Phase VII

$1,901,000 the first year is to the
commissioner of natural resources for an agreement with The Nature Conservancy
to acquire land in fee for native prairie, wetland, and savanna and to restore
and enhance grasslands, wetlands, and savanna.Subject to evaluation criteria in Minnesota Rules, part 6136.0900,
priority must be given to acquiring lands that are eligible for the native
prairie bank under Minnesota Statutes, section 84.96, or lands adjacent to
protected native prairie.No later than
180 days after The Nature Conservancy's fiscal year ends, The Nature
Conservancy must submit to the Lessard-Sams Outdoor Heritage Council annual
income statements and balance sheets for income and expenses from land acquired
with this appropriation.A list of
proposed land acquisitions must be provided as part of the required
accomplishment plan and must be consistent with the priorities identified in
Minnesota Prairie Conservation Plan.

$2,683,000 the first year is to the
commissioner of natural resources for an agreement with The Nature Conservancy
in cooperation with the United States Fish and Wildlife Service to acquire land
in fee or permanent conservation easements and restore lands in the Northern
Tallgrass Prairie Habitat Preservation Area in western Minnesota for addition
to the Northern Tallgrass Prairie National Wildlife Refuge.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquiring lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan, and the acquisitions must be consistent with the
priorities in Minnesota Prairie Conservation Plan.

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(e)
Cannon River Headwaters Habitat Complex - Phase VII

$1,436,000 the first year is to the
commissioner of natural resources for an agreement with The Trust for Public
Land to acquire in fee and restore lands in the Cannon River watershed for
wildlife management purposes under Minnesota Statutes, section 86A.05,
subdivision 8.Subject to evaluation
criteria in Minnesota Rules, part 6136.0900, priority must be given to
acquiring lands that are eligible for the native prairie bank under Minnesota
Statutes, section 84.96, or lands adjacent to protected native prairie.A list of proposed land acquisitions must be
provided as part of the required accomplishment plan.

(f)Accelerated
Native Prairie Bank Protection - Phase VI

$2,481,000 the first year is to the
commissioner of natural resources to acquire permanent conservation easements
to implement the strategies in Minnesota Prairie Conservation Plan to protect
and restore native prairie.Of this
amount, up to $140,000 is for establishing monitoring and enforcement funds as
approved in the accomplishment plan and subject to Minnesota Statutes, section
97A.056, subdivision 17.Subject to
evaluation criteria in Minnesota Rules, part 6136.0900, priority must be given
to acquiring lands that are eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands adjacent to protected native
prairie.A list of permanent
conservation easements must be provided as part of the final report.

(g)Reinvest
In Minnesota (RIM) Buffers for Wildlife and Water - Phase VII

$5,333,000 the first year is to the Board
of Water and Soil Resources to restore habitat and acquire permanent
conservation easements under Minnesota Statutes, section 103F.515, to protect,
restore, and enhance habitat by expanding the riparian-buffer program of the
clean water fund for at least equal wildlife benefits from buffers on private
land.Of this amount, up to $858,000 is
for establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056, subdivision
17.A list of permanent conservation
easements must be provided as part of the final report.

$1,908,000 the first year is to the
commissioner of natural resources for an agreement with Pheasants Forever in
cooperation with the Minnesota Prairie Chicken Society to acquire land in fee
and restore and enhance lands in the southern Red River valley for wildlife
management purposes under Minnesota Statutes, section 86A.05, subdivision 8, or
to be designated and managed as

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waterfowl-production
areas in Minnesota in cooperation with the United States Fish and Wildlife
Service.Subject to evaluation criteria
in Minnesota Rules, part 6136.0900, priority must be given to acquiring lands
that are eligible for the native prairie bank under Minnesota Statutes, section
84.96, or lands adjacent to protected native prairie.A list of proposed land acquisitions must be
provided as part of the required accomplishment plan.

$3,950,000 the first year is to the
commissioner of natural resources to accelerate restoration and enhancement of
prairies, grasslands, and savannas on wildlife management areas, scientific and
natural areas, native prairie bank land, bluff prairies on state forest land in
southeastern Minnesota, and United States Fish and Wildlife Service
waterfowl-production area and refuge lands.A list of proposed land restorations and enhancements must be provided
as part of the required accomplishment plan.

(j)Anoka
Sandplain Habitat Restoration and Enhancement - Phase V

$1,130,000 the first year is to the
commissioner of natural resources for agreements to acquire permanent
conservation easements and to restore and enhance wildlife habitat on public
lands in Anoka, Benton, Isanti, Morrison, and Stearns Counties as follows:$41,000 is to the Anoka Conservation District,
$231,000 is to the Isanti County Soil and Water Conservation District, $345,000
is to Great River Greening, $163,000 is to the Stearns County Soil and Water
Conservation District, and $350,000 is to Minnesota Land Trust.Up to $40,000 to Minnesota Land Trust is for
establishing monitoring and enforcement funds as approved in the accomplishment
plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.A list of proposed permanent conservation
easements, restorations, and enhancements must be provided as part of the
required accomplishment plan.

Subd. 3.Forests

16,824,000

-0-

(a)Carnelian Creek Conservation Corridor

$2,458,000 the first year is to the
commissioner of natural resources for an agreement with Minnesota Land Trust to
acquire permanent conservation easements in Washington County.Of this amount, up to $30,000 is for
establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of proposed
permanent conservation easements must be provided as part of the required
accomplishment plan.

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(b)
Laurentian Forest - St. Louis County Habitat Project

$2,400,000 the first year is to the
commissioner of natural resources for agreements with the Minnesota Deer
Hunters Association in cooperation with The Conservation Fund and St. Louis
County to acquire land in fee to be transferred to St. Louis County for
wildlife habitat purposes.The amount is
for agreements as follows:$2,292,000 to
the Minnesota Deer Hunter Association and $108,000 to The Conservation Fund.A list of proposed land acquisitions must be
provided as part of the required accomplishment plan.

(c)Southeast
Minnesota Protection and Restoration - Phase V

$2,375,000 the first year is to the
commissioner of natural resources to acquire land in fee for wildlife
management purposes under Minnesota Statutes, section 86A.05, subdivision 8; to
acquire land in fee for scientific and natural areas under Minnesota Statutes,
section 86A.05, subdivision 5; to acquire land in fee for state forest purposes
under Minnesota Statutes, section 86A.05, subdivision 7; to acquire permanent
conservation easements; and to restore and enhance prairie, grassland, forest,
and savanna.The amount is for
agreements as follows:$1,000,000 to The
Nature Conservancy, $675,000 to The Trust for Public Land, and $700,000 to
Minnesota Land Trust.Up to $80,000 to Minnesota
Land Trust is for establishing a monitoring and enforcement fund as approved in
the accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.No later than 180 days
after the The Nature Conservancy's fiscal year ends, The Nature Conservancy
must submit to the Lessard-Sams Outdoor Heritage Council annual income
statements and balance sheets for income and expenses from land acquired in fee
with this appropriation and not transferred to the state or a local governmental
unit.A list of proposed land
acquisitions must be provided as part of the required accomplishment plan.

(d)Minnesota Forests for the Future - Phase V

$2,291,000 the first year is to the
commissioner of natural resources to acquire easements for forest, wetland, and
shoreline habitat through working forest permanent conservation easements under
the Minnesota forests for the future program pursuant to Minnesota Statutes,
section 84.66.A conservation easement
acquired with money appropriated under this paragraph must comply with
Minnesota Statutes, section 97A.056, subdivision 13.The accomplishment plan must include an
easement monitoring and enforcement plan.Of this amount, up to $72,000 is for establishing a monitoring and
enforcement fund as approved in the accomplishment plan and subject to
Minnesota Statutes, section 97A.056, subdivision 17.A list of permanent conservation easements
must be provided as part of the final report.

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(e)
State Forest Acquisitions - Phase IV

$1,000,000 the first year is to the
commissioner of natural resources to acquire lands in fee for wildlife habitat
purposes in the Richard J. Dorer Memorial Hardwood State Forest under Minnesota
Statutes, section 86A.05, subdivision 7.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan.

(f)Critical Shoreland Protection Program - Phase IV

$1,700,000 the first year is to the
commissioner of natural resources for an agreement with Minnesota Land Trust to
acquire permanent conservation easements along rivers and lakes in the northern
forest region.Of this amount, up to
$120,000 is for establishing a monitoring and enforcement fund as approved in
the accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of proposed
permanent conservation easements must be provided as part of the required
accomplishment plan.

(g)Bushmen Lake

$4,600,000 the first year is to the
commissioner of natural resources for an agreement with The Conservation Fund
in cooperation with the United States Forest Service to acquire lands in fee
adjacent to Bushmen Lake in St. Louis County to be managed for wildlife
habitat purposes.A list of proposed
land acquisitions must be provided as part of the required accomplishment plan.

Subd. 4.Wetlands

31,744,000

-0-

(a)Accelerating
Waterfowl-Production Area Acquisition - Phase IX

$5,500,000 the first year is to the
commissioner of natural resources for an agreement with Pheasants Forever to
acquire land in fee and restore and enhance wetlands and grasslands to be
designated and managed as waterfowl-production areas in Minnesota in
cooperation with the United States Fish and Wildlife Service.A list of proposed land acquisitions must be
provided as part of the required accomplishment plan.

(b)Shallow Lakes and Wetland Protection Program - Phase VI

$3,625,000 the first year is to the
commissioner of natural resources for an agreement with Ducks Unlimited to
acquire land in fee and restore prairie lands, wetlands, and land-buffering
shallow lakes for wildlife management purposes under Minnesota Statutes,
section 86A.05, subdivision 8.A list of
proposed acquisitions must be provided as part of the required accomplishment
plan.

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(c)
RIM Wetlands Partnership - Phase VIII

$15,398,000 the first year is to the Board
of Water and Soil Resources to acquire permanent conservation easements and to
restore wetlands and native grassland habitat under Minnesota Statutes, section
103F.515.Of this amount, up to $306,000
is for establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of permanent
conservation easements must be provided as part of the final report.

(d)Wild-Rice Shoreland Protection Program - Phase V

$750,000 the first year is to the Board of
Water and Soil Resources to acquire permanent conservation easements on
wild-rice lake shoreland habitat for native wild-rice bed protection.Of this amount, up to $59,000 is for
establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of permanent
conservation easements must be provided as part of the final report by the
Board of Water and Soil Resources.

(e)Accelerated
Shallow Lakes and Wetlands Enhancement - Phase IX

$1,755,000 the first year is to the
commissioner of natural resources to enhance and restore shallow lakes and
wetland habitat statewide.A list of
proposed land restorations and enhancements must be provided as part of the
required accomplishment plan.

(f)Living
Shallow Lakes and Wetland Initiative - Phase VI

$4,716,000 the first year is to the
commissioner of natural resources for an agreement with Ducks Unlimited to
restore and enhance shallow lakes and wetlands on public lands and wetlands
under permanent conservation easement for wildlife management purposes.A list of proposed shallow-lake enhancements
and wetland restorations must be provided as part of the required
accomplishment plan.

Subd. 5.Habitats

26,544,000

-0-

(a)Mississippi
Headwaters Habitat Corridor Partnership - Phase III

$1,617,000 the first year is to the
commissioner of natural resources to acquire lands in fee and restore wildlife
habitat in the Mississippi headwaters and for agreements as follows:$60,000 to the Mississippi Headwaters Board
and $1,557,000 to The Trust for Public Land.$779,000 the first year is to the Board of Water and Soil Resources to
acquire lands in permanent conservation

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easements
and to restore wildlife habitat.Up to
$59,000 to the Board of Water and Soil Resources is for establishing a
monitoring and enforcement fund as approved in the accomplishment plan and
subject to Minnesota Statutes, section 97A.056, subdivision 17.A list of proposed acquisitions must be
included as part of the required accomplishment plan.

$1,716,000 the first year is to the
commissioner of natural resources to acquire land in permanent conservation
easements to sustain healthy fish habitat on coldwater lakes in Aitkin, Cass,
Crow Wing, and Hubbard Counties for agreements as follows:$113,000 to the Leech Lake Area Watershed
Foundation and $1,603,000 to Minnesota Land Trust.Up to $120,000 to Minnesota Land Trust is for
establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of permanent
conservation easements must be provided as part of the required accomplishment
plan.

(c)Goose Prairie

$600,000 the first year is to the
commissioner of natural resources for an agreement with the Wild Rice Watershed
District, in cooperation with the Department of Natural Resources, to enhance
aquatic and upland habitat in and adjacent to the Goose Prairie Marsh Wildlife
Management Area in Clay County.A list
of proposed land enhancements must be provided as part of the required
accomplishment plan.

$2,403,000 the first year is to the commissioner
of natural resources for an agreement with Minnesota Trout Unlimited to restore
or enhance habitat for trout and other species in and along coldwater rivers,
lakes, and streams in Minnesota.A list
of proposed restorations and enhancements must be provided as part of the
required accomplishment plan.

(e)DNR Stream Habitat - Phase II

$2,166,000 the first year is to the
commissioner of natural resources to restore and enhance habitat in degraded
streams and critical aquatic-species habitat and to facilitate fish passage.A list of proposed land restorations and
enhancements must be provided as part of the required accomplishment plan.

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(f)
St. Louis River Restoration Initiative - Phase IV

$3,392,000 the first year is to the
commissioner of natural resources to restore aquatic habitats in the St. Louis
River estuary.Of this appropriation, up
to $226,000 is for an agreement with Minnesota Land Trust.A list of proposed restorations must be
provided as part of the required accomplishment plan.

(g)Shell Rock River Watershed Habitat Restoration Program -
Phase VI

$1,779,000 the first year is to the
commissioner of natural resources for an agreement with the Shell Rock River
Watershed District to acquire land in fee and restore and enhance aquatic
habitat in the Shell Rock River watershed.A list of proposed acquisitions, restorations, and enhancements must be
provided as part of the required accomplishment plan.

(h)Lake Wakanda Enhancement Project

$921,000 the first year is to the
commissioner of natural resources for an agreement with Kandiyohi County to
enhance aquatic habitat in and adjacent to Lake Wakanda in Kandiyohi County.A list of proposed land enhancements must be provided
as part of the required accomplishment plan.

(i)Wolverton Creek Habitat Restoration

$1,877,000 the first year is to the
commissioner of natural resources for an agreement with the Buffalo-Red River
Watershed District to acquire permanent conservation easements and restore and
enhance aquatic and upland habitat associated with Wolverton Creek in the
Buffalo-Red River watershed.A list of
proposed acquisitions, restorations, and enhancements must be provided as part
of the required accomplishment plan.

$9,294,000 the first year is to the
commissioner of natural resources for a program to provide competitive matching
grants of up to $400,000 to local, regional, state, and national organizations
for enhancing, restoring, or protecting forests, wetlands, prairies, or habitat
for fish, game, or wildlife in Minnesota.Of this amount, up to $2,660,000 is for grants in the seven-county
metropolitan area and cities with a population of 50,000 or greater.Grants must not be made for activities
required to fulfill the duties of owners of lands subject to conservation
easements.Grants must not be for
projects that have a total project cost exceeding $575,000.Of the total appropriation, $634,000 may be
spent for personnel costs and other direct and necessary administrative costs.Grantees may

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acquire
land or interests in land.Easements
must be permanent.Grants may not be
used to establish easement stewardship accounts.The program must require a match of at least
ten percent from nonstate sources for all grants.The match may be cash or in‑kind
resources.For grant applications of
$25,000 or less, the commissioner must provide a separate, simplified
application process.Subject to
Minnesota Statutes, the commissioner must, when evaluating projects of equal
value, give priority to organizations that have a history of receiving or a
charter to receive private contributions for local conservation or habitat
projects.If acquiring land in fee or a
conservation easement, priority must be given to projects associated with or
within one mile of existing wildlife management areas under Minnesota Statutes,
section 86A.05, subdivision 8; scientific and natural areas under Minnesota Statutes, sections 84.033 and
86A.05, subdivision 5; or aquatic management areas under Minnesota
Statutes, sections 86A.05, subdivision 14, and 97C.02.All restoration or enhancement projects must
be on land permanently protected by a permanent covenant ensuring perpetual
maintenance and protection of restored and enhanced habitat, by a conservation
easement, or by public ownership, or must be in public waters as defined in
Minnesota Statutes, section 103G.005, subdivision 15.Priority must be given to restoration and
enhancement projects on public lands.Minnesota
Statutes, section 97A.056, subdivision 13, applies to grants awarded under this
paragraph.This appropriation is
available until June 30, 2021.No less
than five percent of the amount of each grant must be held back from
reimbursement until the grant recipient has completed a grant accomplishment
report by the deadline and in the form prescribed by and satisfactory to the
Lessard-Sams Outdoor Heritage Council.The
commissioner must provide notice of the grant program in the game and fish law
summary prepared under Minnesota Statutes, section 97A.051, subdivision 2.

Subd. 6.Administration

879,000

585,000

(a)Contract Management

$150,000 the first year is to the
commissioner of natural resources for contract management duties assigned in
this section.The commissioner must
provide an accomplishment plan in the form specified by the Lessard-Sams
Outdoor Heritage Council for expending this appropriation.The accomplishment plan must include a copy
of the grant contract template and reimbursement manual.No money may be expended before the
Lessard-Sams Outdoor Heritage Council approves the accomplishment plan.

(b)Legislative Coordinating Commission

$571,000 the first year and $578,000 the
second year is to the Legislative Coordinating Commission for Lessard-Sams
Outdoor Heritage Council administrative expenses and for compensating

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and
reimbursing expenses of council members.This appropriation is available until June 30, 2019.Minnesota Statutes, section 16A.281, applies
to this appropriation.

(c)Technical Evaluation Panel

$150,000 the first year is to the
commissioner of natural resources for a technical evaluation panel to conduct
up to 20 restoration and enhancement evaluations under Minnesota Statutes,
section 97A.056, subdivision 10.

(d)Legacy Web site

$8,000 the first year and $7,000 the
second year is to the Legislative Coordinating Commission for the Web site
required in Minnesota Statutes, section 3.303, subdivision 10.

Subd. 7.Appropriation
Availability

Money appropriated in this section may not
be spent on activities unless they are directly related to and necessary for a
specific appropriation and are specified in the accomplishment plan approved by
the Lessard-Sams Outdoor Heritage Council.Money appropriated in this section must not be spent on institutional
overhead charges that are not directly related to and necessary for a specific
appropriation.Unless otherwise
provided, the amounts in this section are available until June 30, 2020.For acquiring real property, the amounts in
this section are available until June 30, 2021, if a binding agreement with a
landowner or purchase agreement is entered into by June 30, 2020, and closed no
later than June 30, 2021.Appropriations
for restoration or enhancement are available until June 30, 2022, or five years
after acquisition, whichever is later, so that initial restoration or
enhancement work can be completed.If a
project receives at least 15 percent of its funding from federal funds, the
appropriation period may be extended to equal the availability of federal
funding to a maximum of six years, provided the federal funding was confirmed
and included in the first draft accomplishment plan.Money appropriated for fee title acquisition
of land may be used to restore, enhance, and provide for public use of the land
acquired with the appropriation.Public
use facilities must have no more than a minimal impact on habitat in acquired
lands.

Subd. 8.Payment
Conditions and Capital Equipment Expenditures

All agreements referred to in this section
must be administered on a reimbursement basis unless otherwise provided in this
section.Notwithstanding Minnesota
Statutes, section 16A.41, expenditures directly related to each appropriation's
purpose made on or after July 1, 2017, or the date of accomplishment plan
approval,

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whichever
is later, are eligible for reimbursement unless otherwise provided in this
section.For the purposes of
administering appropriations and legislatively authorized agreements paid out
of the outdoor heritage fund, an expense must be considered reimbursable by the
administering agency when the recipient presents the agency with an invoice or
binding agreement with the landowner and the recipient attests that the goods
have been received or the landowner agreement is binding.Periodic reimbursement must be made upon
receiving documentation that the items articulated in the accomplishment plan
approved by the Lessard-Sams Outdoor Heritage Council have been achieved,
including partial achievements as evidenced by progress reports approved by the
Lessard-Sams Outdoor Heritage Council.Reasonable
amounts may be advanced to projects to accommodate cash-flow needs, support
future management of acquired lands, or match a federal share.The advances must be approved as part of the
accomplishment plan.Capital equipment
expenditures for specific items over $10,000 must be itemized in and approved
as part of the accomplishment plan.

Subd. 9.Mapping

Each direct recipient of money appropriated
in this section, as well as each recipient of a grant awarded pursuant to this
section, must provide geographic information to the Lessard-Sams Outdoor
Heritage Council for mapping any lands acquired in fee with money appropriated
in this section and open to public taking of fish and game.The commissioner of natural resources must
include the lands acquired in fee with money appropriated in this section on
maps showing public recreation opportunities.Maps must include information on and acknowledgment of the outdoor
heritage fund, including a notation of any restrictions.

Subd. 3.Council recommendations.(a) The council shall make
recommendations to the legislature on appropriations of money from the outdoor
heritage fund that are consistent with the Constitution and state law and that
will achieve the outcomes of existing natural resource plans, including, but
not limited to, the Minnesota Statewide Conservation and Preservation Plan,
that directly relate to the restoration, protection, and enhancement of
wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that
prevent forest fragmentation, encourage forest consolidation, and expand
restored native prairie.In making
recommendations, the council shall consider a range of options that would best
restore, protect, and enhance wetlands, prairies, forests, and habitat for
fish, game, and wildlife.The council's
recommendations shall be submitted no later than January 15 each year.The council shall present its recommendations
to the senate and house of representatives committees with jurisdiction over
the environment and natural resources budget by February 15 in odd-numbered
years, and within the first four weeks of the legislative session in
even-numbered years.The council's
budget recommendations to the legislature shall be separate from the Department
of Natural Resource's budget recommendations.

(b) To encourage and support local
conservation efforts, the council shall establish a conservation partners
program.Local, regional, state, or
national organizations may apply for matching grants for restoration,
protection, and enhancement of wetlands, prairies, forests, and habitat for
fish, game, and wildlife, prevention of forest fragmentation, encouragement of
forest consolidation, and expansion of restored native prairie.

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(c)
The council may work with the Clean Water Council to identify projects that are
consistent with both the purpose of the outdoor heritage fund and the purpose
of the clean water fund.

(d) The council may make recommendations to
the Legislative-Citizen Commission on Minnesota Resources on scientific
research that will assist in restoring, protecting, and enhancing wetlands,
prairies, forests, and habitat for fish, game, and wildlife, preventing forest
fragmentation, encouraging forest consolidation, and expanding restored native
prairie.

(e) Recommendations of the council,
including approval of recommendations for the outdoor heritage fund, require an
affirmative vote of at least nine members of the council.

(f) The council may work with the Clean
Water Council, the Legislative-Citizen Commission on Minnesota Resources, the
Board of Water and Soil Resources, soil and water conservation districts, and
experts from Minnesota State Colleges and Universities and the University of
Minnesota in developing the council's recommendations.

(g) The council shall develop and
implement a process that ensures that citizens and potential recipients of
funds are included throughout the process, including the development and
finalization of the council's recommendations.The process must include a fair, equitable, and thorough process for
reviewing requests for funding and a clear and easily understood process for
ranking projects.

(h) The council shall use the regions of
the state based upon the ecological sections and subsections developed by the
Department of Natural Resources and establish objectives for each region and
subregion to achieve the purposes of the fund outlined in the state
constitution.

(i) The council shall develop and submit
to the Legislative Coordinating Commission plans for the first ten years of
funding, and a framework for 25 years of funding, consistent with statutory and
constitutional requirements.The council
may use existing plans from other legislative, state, and federal sources, as
applicable.

(j) When making recommendations, the
council must prioritize projects that restore and enhance wetlands, prairies,
forests, and habitat for fish, game, and wildlife over projects that acquire
land.

Subd. 22.Revenues.(a) A recipient must disclose to the
Lessard-Sams Outdoor Heritage Council and the commissioner all revenues that
are received by the recipient before the availability of the appropriation ends
and that are generated from activities on land acquired in fee title or
easement, restored, or enhanced with money from the outdoor heritage fund.The revenues must be disclosed to the council
and commissioner no later than 60 days after the availability of the
appropriation ends.

(b) For all revenues disclosed under
paragraph (a), a recipient must:

(1) use the revenues to protect,
restore, or enhance wetlands, prairies, forests, or habitat for fish, game, or
wildlife according to the appropriation purposes and the approved
accomplishment plan;

(2) use the revenues for other purposes
as approved in the accomplishment plan by the Lessard-Sams Outdoor Heritage
Council; or

(3) transfer the revenues to the
outdoor heritage fund no later than 60 days after the availability of the
appropriation ends, unless otherwise approved by the council.

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(c)
Paragraph (b), clause (3), does not apply to the state and its departments and
agencies.

Subd. 23.Trails.Forest lands acquired with money from
the outdoor heritage fund must be open to all recreational trail uses unless
the land does not support the recreational trail use or the constitutional
requirements as determined by the commissioner of natural resources.A recipient of an appropriation from the
outdoor heritage fund establishing or maintaining trails on forest lands
acquired with that appropriation must provide equal opportunities for motorized
and nonmotorized users on lands acquired in accordance with the Department of
Natural Resources and county forest best management practices.

EFFECTIVE
DATE.This section is
effective July 1, 2017, and applies to forest lands acquired with an appropriation
enacted on or after that date.

Subd. 24.Reserve
requirement.In any fiscal
year, at least five percent of that year's projected tax receipts determined by
the most recent forecast for the outdoor heritage fund must not be
appropriated.

Subd. 25.Previous
funding notification requirement.Any
state agency or organization requesting a direct appropriation from the outdoor
heritage fund must inform the Lessard-Sams Outdoor Heritage Council and the
house of representatives and senate committees having jurisdiction over the
outdoor heritage fund, at the time the request for funding is made, whether the
request is supplanting or is a substitution for any previous funding that was
not from a legacy fund and was used for the same purpose.

$3,480,000 in the second year is to the
commissioner of natural resources to acquire interests in land in fee or
permanent conservation easements for aquatic management areas under Minnesota
Statutes, sections 86A.05, subdivision 14, and 97C.02, and to restore and
enhance aquatic habitat.A list of
proposed land acquisitions must be provided as part of the required
accomplishment plan.The accomplishment
plan must include an easement stewardship plan.Up to $25,000 is for establishing a monitoring and enforcement fund as
approved in the accomplishment plan and subject to Minnesota Statutes, section
97A.056, subdivision 17.An annual
financial report is required for any monitoring and enforcement fund
established, including expenditures from the fund and a description of annual
monitoring and enforcement activities.

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(b)
Metro Big Rivers Habitat - Phase III

$3,680,000 in the second year is to the
commissioner of natural resources for agreements to acquire interests in land
in fee or permanent conservation easements and to restore and enhance natural
systems associated with the Mississippi, Minnesota, and St. Croix Rivers
as follows:$1,000,000 to the Minnesota
Valley National Wildlife Refuge Trust, Inc.; $375,000 to the Friends of the
Mississippi; $375,000 to Great River Greening; $930,000 to The Minnesota Land
Trust; and $1,000,000 to The Trust for Public Land.A list of proposed acquisitions,
restorations, and enhancements must be provided as part of the required
accomplishment plan.The accomplishment
plan must include an easement stewardship plan.Up to $51,000 is for establishing a monitoring and enforcement fund as
approved in the accomplishment plan and subject to Minnesota Statutes, section
97A.056, subdivision 17.An annual
financial report is required for any monitoring and enforcement fund
established, including expenditures from the fund and a description of annual
monitoring and enforcement activities.

$480,000 in the second year is to the
commissioner of natural resources for an agreement with Dakota County to
acquire permanent conservation easements and restore and enhance habitats along
the Mississippi, Cannon, and Vermillion Rivers.A list of proposed acquisitions, restorations, and enhancements must be
provided as part of the required accomplishment plan.The accomplishment plan must include an
easement stewardship plan.Up to $20,000
is for establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.An annual financial
report is required for any monitoring and enforcement fund established,
including expenditures from the fund and a description of annual monitoring and
enforcement activities.

(d) Lower St. Louis River Habitat Restoration

$3,670,000 in the second year is to the
commissioner of natural resources to restore habitat in the lower St. Louis
River estuary.A list of proposed
projects must be provided as part of the required accomplishment plan.

(e) Coldwater Fish Habitat Enhancement - Phase IV

$2,120,000 in the second year is to the
commissioner of natural resources for an agreement with Minnesota Trout
Unlimited to restore and enhance coldwater fish lake, river, and stream
habitats in Minnesota.A list of
proposed restorations and enhancements must be provided as part of the required
accomplishment plan.

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(f)
Grand Marais Creek Outlet Restoration

$2,320,000 in the second year is to the commissioner of
natural resources for an agreement with the Red Lake Watershed District to
restore and enhance stream and related habitat in Grand Marais Creek.A list of proposed restorations and
enhancements must be provided as part of the required accomplishment plan.

(g) Knife River
Habitat Restoration

$380,000 in the second year is to the commissioner of natural
resources for an agreement with the Lake Superior Steelhead Association to
restore trout habitat in the Upper Knife River Watershed.A list of proposed restorations must be
provided as part of the required accomplishment plan.Notwithstanding rules of the commissioner of
natural resources, restorations conducted pursuant to this paragraph may be
accomplished by excavation.

(h) Protect Aquatic
Habitat from Invasive Carp

$7,500,000 in the second year is to the commissioner of
natural resources for design construction, including acquisition, operation, and evaluation of structural deterrents for
invasive carp to protect Minnesota's aquatic habitat.Use of this money requires a one-to-one
match for projects on state boundary waters.A match is not required for design or feasibility studies.This appropriation is available until June
30, 2019.

(i)
Outdoor Heritage Conservation Partners
Grant Program - Phase IV

$4,990,000 in the second year is to the commissioner of
natural resources for a program to provide competitive, matching grants of up
to $400,000 to local, regional, state, and national organizations for
enhancing, restoring, or protecting forests, wetlands, prairies, and habitat
for fish, game, or wildlife in Minnesota.Grants shall not be made for activities required to fulfill the duties
of owners of lands subject to conservation easements.Grants shall not be made from appropriations
in this paragraph for projects that have a total project cost exceeding
$575,000.$366,000 of this appropriation
may be spent for personnel costs and other direct and necessary administrative
costs.Grantees may acquire land or
interests in land.Easements must be
permanent.Land acquired in fee must be
open to hunting and fishing during the open season unless otherwise provided by
state law.The program shall require a
match of at least ten percent from nonstate sources for all grants.The match may be cash or in-kind resources.For grant applications of $25,000 or less,
the commissioner shall provide a separate, simplified application process.Subject to Minnesota Statutes, the
commissioner of natural resources shall, when evaluating projects of equal
value, give priority to organizations

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that
have a history of receiving or charter to receive private contributions for
local conservation or habitat projects.If
acquiring land or a conservation easement, priority shall be given to projects
associated with existing wildlife management areas under Minnesota Statutes,
section 86A.05, subdivision 8; scientific and natural areas under Minnesota
Statutes, sections 84.033 and 86A.05, subdivision 5; and aquatic management
areas under Minnesota Statutes, sections 86A.05, subdivision 14, and 97C.02.All restoration or enhancement projects must
be on land permanently protected by a conservation easement or public ownership
or in public waters as defined in Minnesota Statutes, section 103G.005,
subdivision 15.Priority shall be given
to restoration and enhancement projects on public lands.Minnesota Statutes, section 97A.056,
subdivision 13, applies to grants awarded under this paragraph.This appropriation is available until June
30, 2016.No less than five percent of
the amount of each grant must be held back from reimbursement until the grant
recipient has completed a grant accomplishment report by the deadline and in
the form prescribed by and satisfactory to the Lessard-Sams Outdoor Heritage
Council.The commissioner shall provide
notice of the grant program in the game and fish law summaries that are
prepared under Minnesota Statutes, section 97A.051, subdivision 2.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

$4,570,000 in the first year is to the
commissioner of natural resources to acquire land in fee for wildlife
management purposes under Minnesota Statutes, section 86A.05, subdivision 8,
and to acquire land in fee for scientific and natural area purposes under
Minnesota Statutes, section 86A.05, subdivision 5.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquisition of lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land and permanent conservation easement acquisitions
must be provided as part of the required accomplishment plan.

(b) Accelerating
Wildlife Management Area Acquisition - Phase VII

$7,452,000 in the first year is to the
commissioner of natural resources for an agreement with Pheasants Forever to
acquire land in fee for wildlife management area purposes under Minnesota

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Statutes,
section 86A.05, subdivision 8.Subject
to evaluation criteria in Minnesota Rules, part 6136.0900, priority must be
given to acquisition of lands that are eligible for the native prairie bank
under Minnesota Statutes, section 84.96, or lands adjacent to protected native
prairie.A list of proposed land acquisitions
must be provided as part of the required accomplishment plan.

(c) Minnesota Prairie Recovery Project - Phase VI

$4,032,000 in the first year is to the
commissioner of natural resources for an agreement with The Nature Conservancy
to acquire native prairie, wetlands, and savanna and restore and enhance
grasslands, wetlands, and savanna.Subject
to evaluation criteria in Minnesota Rules, part 6136.0900, priority must be
given to acquisition of lands that are eligible for the native prairie bank
under Minnesota Statutes, section 84.96, or lands adjacent to protected native
prairie.Annual income statements and
balance sheets for income and expenses from land acquired with this
appropriation must be submitted to the Lessard-Sams Outdoor Heritage Council no
later than 180 days following the close of The Nature Conservancy's fiscal year.A list of proposed land acquisitions must be
provided as part of the required accomplishment plan and must be consistent
with the priorities identified in the Minnesota Prairie Conservation Plan.

$3,430,000 in the first year is to the
commissioner of natural resources for an agreement with The Nature Conservancy
in cooperation with the United States Fish and Wildlife Service to acquire land
in fee or permanent conservation easements within the Northern Tallgrass
Prairie Habitat Preservation Area in western Minnesota for addition to the
Northern Tallgrass Prairie National Wildlife Refuge.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquisition of lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan and must be consistent with the priorities in the
Minnesota Prairie Conservation Plan.

(e) Accelerated
Native Prairie Bank Protection - Phase IV

$3,740,000 in the first year is to the
commissioner of natural resources to implement the Minnesota Prairie
Conservation Plan through the acquisition of permanent conservation easements
to protect native prairie and grasslands.Up to $165,000 is for establishing monitoring and enforcement funds as
approved in the accomplishment plan and subject to Minnesota Statutes, section
97A.056, subdivision 17.Subject to
evaluation criteria in

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Minnesota
Rules, part 6136.0900, priority must be given to acquisition of lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of permanent conservation easements must be provided as part of
the final report.

(f) Minnesota
Buffers for Wildlife and Water - Phase V

$4,544,000 in the first year is to the Board
of Water and Soil Resources to acquire permanent conservation easements to
protect and enhance habitat by expanding the clean water fund riparian buffer
program for at least equal wildlife benefits from buffers on private land.Up to $72,500$728,000 is for
establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of permanent
conservation easements must be provided as part of the final report.

(g) Cannon River
Headwaters Habitat Complex - Phase V

$1,380,000 in the first year is to the
commissioner of natural resources for an agreement with The Trust for Public Land
to acquire and restore lands in the Cannon River watershed for wildlife
management purposes under Minnesota Statutes, section 86A.05, subdivision 8.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquisition of lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan.

$1,800,000 in the first year is to the
commissioner of natural resources for an agreement with Pheasants Forever in
cooperation with the Minnesota Prairie Chicken Society to acquire and restore
lands in the southern Red River Valley for wildlife management purposes under
Minnesota Statutes, section 86A.05, subdivision 8, or for designation and
management as waterfowl production areas in Minnesota, in cooperation with the
United States Fish and Wildlife Service.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan.

(i) Protecting and
Restoring Minnesota's Important Bird Areas

$1,730,000 in the first year is to the
commissioner of natural resources for agreements to acquire conservation
easements within important bird areas identified in the Minnesota Prairie
Conservation Plan, to be used as follows:$408,000 is to Audubon

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Minnesota
and $1,322,000 is to Minnesota Land Trust, of which up to $100,000 is for
establishing monitoring and enforcement funds as approved in the accomplishment
plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.A list of permanent conservation easements
must be provided as part of the final report.

(j) Wild Rice River Corridor Habitat Restoration

$2,270,000 in the first year is to the
commissioner of natural resources for an agreement with the Wild Rice Watershed
District to acquire land in fee and permanent conservation easement and to restore
river and related habitat in the Wild Rice River corridor.A list of proposed acquisitions and
restorations must be provided as part of the required accomplishment plan.

$4,880,000 in the first year is to the
commissioner of natural resources to accelerate the restoration and enhancement
of prairie communities on wildlife management areas, scientific and natural
areas, state forest land, and land under native prairie bank easements.A list of proposed land restorations and
enhancements must be provided as part of the required accomplishment plan.

(l) Enhanced Public Land Grasslands - Phase II

$1,120,000 in the first year is to the
commissioner of natural resources for an agreement with Pheasants Forever to
enhance and restore habitat on public lands.A list of proposed land restorations and enhancements must be provided
as part of the final report.

EFFECTIVE
DATE.This section is
effective retroactively from July 1, 2015.

$3,250,000 the second year is to the
commissioner of natural resources to acquire land in fee for wildlife
management purposes under Minnesota Statutes, section 86A.05, subdivision 8,
and to acquire land in fee for scientific and natural area purposes under
Minnesota Statutes, section 86A.05, subdivision 5.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquisition of lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan.

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(b)
Accelerating Wildlife Management Area Acquisition - Phase VIII

$5,229,000 the second year is to the
commissioner of natural resources for an agreement with Pheasants Forever to
acquire in fee and restore lands for wildlife management area purposes under
Minnesota Statutes, section 86A.05, subdivision 8.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquisition of lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan.

(c) Martin
County/Fox Lake Wildlife Management Area Acquisition

$1,000,000 the second year is to the
commissioner of natural resources for an agreement with Fox Lake Conservation
League, Inc. to acquire land in fee and restore strategic prairie grassland,
wetland, and other wildlife habitat for wildlife management area purposes under
Minnesota Statutes, section 86A.05, subdivision 8.A list of proposed acquisitions must be
provided as part of the required accomplishment plan.

$2,754,000 the second year is to the
commissioner of natural resources for an agreement with The Nature Conservancy
in cooperation with the United States Fish and Wildlife Service to acquire land
in fee or permanent conservation easements and restore lands within the
Northern Tallgrass Prairie Habitat Preservation Area in western Minnesota for
addition to the Northern Tallgrass Prairie National Wildlife Refuge.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquisition of lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan and must be consistent with the priorities in the
Minnesota Prairie Conservation Plan.

(e) Cannon River
Headwaters Habitat Complex - Phase VI

$583,000 the second year is to the
commissioner of natural resources for an agreement with The Trust for Public
Land to acquire land in fee and restore lands in the Cannon River watershed for
wildlife management purposes under Minnesota Statutes, section 86A.05,
subdivision 8.Subject to evaluation
criteria in Minnesota Rules, part 6136.0900, priority must be given

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to
acquisition of lands that are eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands adjacent to protected native
prairie.A list of proposed land
acquisitions must be provided as part of the required accomplishment plan.

(f) Accelerated
Native Prairie Bank Protection - Phase V

$2,541,000 the second year is to the
commissioner of natural resources to implement the Minnesota Prairie
Conservation Plan through the acquisition of permanent conservation easements
to protect and restore native prairie.Of
this amount, up to $120,000 is for establishing monitoring and enforcement
funds as approved in the accomplishment plan and subject to Minnesota Statutes,
section 97A.056, subdivision 17.Subject
to evaluation criteria in Minnesota Rules, part 6136.0900, priority must be
given to acquisition of lands that are eligible for the native prairie bank
under Minnesota Statutes, section 84.96, or lands adjacent to protected native
prairie.A list of permanent
conservation easements must be provided as part of the final report.

(g) Reinvest In
Minnesota (RIM) Buffers for Wildlife and Water - Phase VI

$6,708,000 the second year is to the Board of
Water and Soil Resources to acquire permanent conservation easements and
restore habitat under Minnesota Statutes, section 103F.515, to protect,
restore, and enhance habitat by expanding the clean water fund riparian buffer
program for at least equal wildlife benefits from buffers on private land.Of this amount, up to $130,000$1,079,000
is to establish a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of permanent
conservation easements must be provided as part of the final report.

$2,269,000 the second year is to the commissioner
of natural resources for an agreement with Pheasants Forever, in cooperation
with the Minnesota Prairie Chicken Society, to acquire land in fee and restore
and enhance lands in the southern Red River Valley for wildlife management
purposes under Minnesota Statutes, section 86A.05, subdivision 8, or for
designation and management as waterfowl production areas in Minnesota, in
cooperation with the United States Fish and Wildlife Service.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquisition of lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the required
accomplishment plan.

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(i)
Grassland Conservation Partnership - Phase II

$1,475,000 the second year is to the
commissioner of natural resources for an agreement with The Conservation Fund,
in cooperation with Minnesota Land Trust, to acquire permanent conservation
easements and restore high priority grassland, prairie, and wetland habitats as
follows:$64,000 to The Conservation
Fund; and $1,411,000 to Minnesota Land Trust, of which up to $100,000 is for
establishing a monitoring and enforcement fund, as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.Subject to evaluation
criteria in Minnesota Rules, part 6136.0900, priority must be given to
acquisition of lands that are eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands adjacent to protected native
prairie.A list of proposed acquisitions
must be provided as part of the required
accomplishment plan and must be consistent with the priorities in the Minnesota
Prairie Conservation Plan.

$3,983,000 the second year is to the
commissioner of natural resources to accelerate restoration and enhancement of
prairies, grasslands, and savannas on wildlife management areas, scientific and
natural areas, native prairie bank land, and bluff prairies on state forest
land in southeastern Minnesota.A list
of proposed land restorations and enhancements must be provided as part of the
required accomplishment plan.

(k) Anoka Sandplain
Habitat Restoration and Enhancement - Phase IV

$1,208,000 the second year is to the
commissioner of natural resources for agreements to restore and enhance
wildlife habitat on public lands in Anoka, Isanti, Morrison, Sherburne, and
Todd Counties as follows:$93,000 to
Anoka Conservation District; $25,000 to Isanti County Parks and Recreation
Department; $813,000 to Great River Greening; and $277,000 to the National Wild
Turkey Federation.A list of proposed
land restorations and enhancements must be provided as part of the required
accomplishment plan.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

(a) Accelerating the
Waterfowl Production Area Acquisition - Phase VIII

$5,650,000 the second year is to the
commissioner of natural resources for an agreement with Pheasants Forever to
acquire in fee and restore and enhance wetlands and grasslands to be

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designated
and managed as waterfowl production areas in Minnesota, in cooperation with the
United States Fish and Wildlife Service.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan.

(b) Shallow Lake and
Wetland Protection Program - Phase V

$5,801,000 the second year is to the
commissioner of natural resources for an agreement with Ducks Unlimited to
acquire in fee and restore prairie lands, wetlands, and land buffering shallow
lakes for wildlife management purposes under Minnesota Statutes, section
86A.05, subdivision 8.A list of
proposed acquisitions must be provided as part of the required accomplishment
plan.

(c) RIM Wetlands Partnership - Phase VII

$13,808,000 the second year is to the Board of
Water and Soil Resources to acquire lands in permanent conservation easements
and to restore wetlands and native grassland habitat under Minnesota Statutes,
section 103F.515.Of this amount, up to $195,000$410,000 is to establish a monitoring and enforcement fund as approved
in the accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of permanent
conservation easements must be provided as part of the final report.

(d) Wetland Habitat Protection Program - Phase II

$1,629,000 the second year is to the commissioner
of natural resources for an agreement with Minnesota Land Trust to acquire
permanent conservation easements in high-priority wetland habitat complexes in
the prairie and forest/prairie transition regions.Of this amount, up to $180,000 is to establish
a monitoring and enforcement fund, as approved in the accomplishment plan and
subject to Minnesota Statutes, section 97A.056, subdivision 17.A list of proposed easement acquisitions must
be provided as part of the final report.

(e) Accelerated
Shallow Lakes and Wetlands Enhancement - Phase VIII

$2,167,000 the second year is to the
commissioner of natural resources to enhance and restore shallow lakes and
wetland habitat statewide.A list of
proposed land restorations and enhancements must be provided as part of the
required accomplishment plan.

(f) Marsh Lake - Phase II

$2,000,000 the second year is to the
commissioner of natural resources to modify the dam at Marsh Lake for improved
habitat management and to return the historic outlet of the Pomme de Terre
River to Lac Qui Parle.

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EFFECTIVE
DATE.This section is
effective the day following final enactment.

Sec. 12.REPEALER.

Minnesota Statutes 2016, section
97A.056, subdivision 8, is repealed.

ARTICLE
2

CLEAN
WATER FUND

Section 1.CLEAN
WATER FUND APPROPRIATIONS.

The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article.The
appropriations are from the clean water fund and are available for the fiscal
years indicated for allowable activities under the Minnesota Constitution,
article XI, section 15.The figures
"2018" and "2019" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June
30, 2018, or June 30, 2019, respectively."The first year" is fiscal year 2018."The second year" is fiscal year
2019."The biennium" is fiscal
years 2018 and 2019.The appropriations
in this article are onetime.

APPROPRIATIONS

Available for the Year

Ending June 30

2018

2019

Sec. 2.CLEAN
WATER

Subdivision 1.Total
Appropriation

$100,497,000

$111,114,000

The amounts that may be spent for each
purpose are specified in the following sections.

Subd. 2.Availability
of Appropriation

Money appropriated in this article may not
be spent on activities unless they are directly related to and necessary for a
specific appropriation.Money
appropriated in this article must be spent in accordance with Minnesota
Management and Budget's Guidance to Agencies
on Legacy Fund Expenditure.Notwithstanding Minnesota Statutes, section 16A.28, and unless
otherwise specified in this article, fiscal year 2018 appropriations are
available until June 30, 2019, and fiscal
year 2019 appropriations are available until June 30, 2020.If a project receives federal funds, the
period of the appropriation is extended to equal the availability of federal
funding.

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Subd. 3.Disability
Access

Where appropriate, grant recipients of
clean water funds, in consultation with the Council on Disability and other
appropriate governor-appointed disability councils, boards, committees, and
commissions, should make progress toward providing greater access to programs,
print publications, and digital media for people with disabilities related to
the programs the recipient funds using appropriations made in this article.

Sec. 3.DEPARTMENT
OF AGRICULTURE

$7,482,000

$7,484,000

(a) $350,000 the first year and $350,000
the second year are to increase monitoring for pesticides and pesticide
degradates in surface water and groundwater and to use data collected to assess
pesticide use practices.

(b) $2,085,000 the first year and
$2,086,000 the second year are for monitoring and evaluating trends in the
concentration of nitrate in groundwater in areas vulnerable to groundwater
degradation; promoting, developing, and evaluating regional and crop-specific
nutrient best management practices; assessing best management practice
adoption; education and technical support from University of Minnesota
Extension; grants to support agricultural demonstration and implementation
activities; and other actions to protect groundwater from degradation from
nitrate.This appropriation is available
until June 30, 2022.

(c) $75,000 the first year and $75,000 the
second year are for administering clean water funds managed through the
agriculture best management practices loan program.Any unencumbered balance at the end of the
second year shall be added to the corpus of the loan fund.

(d) $1,125,000 the first year and
$1,125,000 the second year are for technical assistance, research, and
demonstration projects on proper implementation of best management practices
and more precise information on nonpoint contributions to impaired waters and
for grants to support on-farm demonstration of agricultural practices.This appropriation is available until June
30, 2022.

(e) $662,000 the first year and $663,000
the second year are for research to quantify and reduce agricultural
contributions to impaired waters and for development and evaluation of best
management practices to protect and restore water resources.This appropriation is available until June
30, 2022.

(f) $50,000 the first year and $50,000 the
second year are for a research inventory database containing water-related
research activities.Costs for
information technology development or support for this research inventory
database may be paid to the Office of MN.IT Services.This appropriation is available until June
30, 2022.

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(g)
$1,500,000 the first year and $1,500,000 the second year are to implement the
Minnesota agricultural water-quality certification program statewide.Funds appropriated in this paragraph are
available until June 30, 2021.

(h) $110,000 the first year and $110,000
the second year are to provide funding for a regional irrigation water quality
specialist through University of Minnesota Extension.

(i) $450,000 the first year and $450,000
the second year are for grants to the Board of Regents of the University of
Minnesota to fund the Forever Green Agriculture Initiative and to protect the
state's natural resources while increasing the efficiency, profitability, and
productivity of Minnesota farmers by incorporating perennial and winter-annual
crops into existing agricultural practices.This appropriation is available until June 30, 2022.

(j) $1,000,000 the first year and
$1,000,000 the second year are for pesticide testing of private wells where
nitrate is detected, as part of the Township Testing Program.This appropriation is available until June
30, 2022.

(k) $75,000 the first year and $75,000 the
second year are to evaluate market opportunities and develop markets for crops
that can be profitable for farmers and beneficial for water quality and soil
health.

(l) A portion of the funds in this section
may be used for programs to train state and local outreach staff in the
intersection between agricultural economics and agricultural conservation.

Sec. 4.PUBLIC
FACILITIES AUTHORITY

$6,300,000

$10,100,000

(a) $6,175,000 the first year and
$9,975,000 the second year are for the point source implementation grants
program under Minnesota Statutes, section 446A.073.This appropriation is available until June
30, 2022.

(b) $125,000 the first year and $125,000
the second year are for small community wastewater treatment grants and loans
under Minnesota Statutes, section 446A.075.This appropriation is available until June 30, 2022.

(c) If there are any uncommitted funds at
the end of each fiscal year under paragraph (a) or (b), the Public Facilities
Authority may transfer the remaining funds to eligible projects under any of
the programs listed in this section based on their priority rank on the
Pollution Control Agency's project priority list.

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Sec. 5.POLLUTION
CONTROL AGENCY

$25,286,000

$25,514,000

(a) $8,275,000 the first year and
$8,275,000 the second year are for completion of needed statewide assessments
of surface water quality and trends according to Minnesota Statutes, chapter
114D.Of this amount, $150,000 the first
year and $150,000 the second year are for grants to the Red River Watershed
Management Board to enhance and expand the existing water quality and watershed
monitoring river watch activities in the schools in the Red River of the North.The Red River Watershed Management Board
shall provide a report to the commissioner of the Pollution Control Agency and
the legislative committees and divisions with jurisdiction over environment and
natural resources finance and policy and the clean water fund by February 15,
2019, on the expenditure of these funds.

(b) $9,409,000 the first year and
$9,638,000 the second year are to develop watershed restoration and protection
strategies (WRAPS), which include total maximum daily load (TMDL) studies and
TMDL implementation plans for waters listed on the United States Environmental
Protection Agency approved impaired waters list in accordance with Minnesota
Statutes, chapter 114D.The agency shall
complete an average of ten percent of the TMDLs each year over the biennium.

(c) $1,181,000 the first year and
$1,182,000 the second year are for groundwater assessment, including enhancing
the ambient monitoring network, modeling, and evaluating trends, including the
reassessment of groundwater that was assessed ten to 15 years ago and found to
be contaminated.

(d) $750,000 the first year and $750,000
the second year are for implementation of the St. Louis River System Area
of Concern Remedial Action Plan.This
appropriation must be matched at a rate of 65 percent nonstate money to 35
percent state money.

(e) $1,000,000 the first year and
$1,000,000 the second year are for TMDL research and database development.

(f) $900,000 the first year and $900,000
the second year are for national pollutant discharge elimination system
wastewater and storm water TMDL implementation efforts.

(g) $3,442,000 the first year and
$3,441,000 the second year are for enhancing the county-level delivery systems
for subsurface sewage treatment system (SSTS) activities necessary to implement
Minnesota Statutes, sections 115.55 and 115.56, for protection of groundwater,
including base grants for all counties with SSTS programs and competitive
grants to counties with specific plans to significantly reduce water pollution
by reducing the number of systems that are an imminent threat to public health
or safety or are

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otherwise
failing.Counties that receive base
grants must report the number of sewage noncompliant properties upgraded
through SSTS replacement, connection to a centralized sewer system, or other
means, including property abandonment or buy-out. Counties also must report the number of
existing SSTS compliance inspections conducted in areas under county
jurisdiction.These required reports are
to be part of established annual reporting for SSTS programs.Counties that conduct SSTS inventories or
those with an ordinance in place that requires an SSTS to be inspected as a
condition of transferring property or as a condition of obtaining a local
permit must be given priority for competitive grants under this paragraph.Of this amount, $1,000,000 each year is
available to counties for grants to low-income landowners to address systems
that pose an imminent threat to public health or safety or fail to protect
groundwater.A grant awarded under this
paragraph may not exceed $40,000 for the biennium.A county receiving a grant under this
paragraph must submit a report to the agency listing the projects funded,
including an account of the expenditures.

(h) $279,000 the first year and $278,000
the second year are for accelerated implementation of MS4 permit requirements
including additional technical assistance to municipalities experiencing
difficulties understanding and implementing the basic requirements of the
municipal storm water program.

(i) $50,000 the first year and $50,000 the
second year are to support activities of the Clean Water Council according to
Minnesota Statutes, section 114D.30, subdivision 1.

(j) Notwithstanding Minnesota Statutes,
section 16A.28, the appropriations in this section are available until June 30,
2022.

Sec. 6.DEPARTMENT
OF NATURAL RESOURCES

$8,671,000

$8,871,000

(a) $1,900,000 the first year and
$2,000,000 the second year are for stream flow monitoring.

(b) $1,200,000 the first year and
$1,300,000 the second year are for lake Index of Biological Integrity (IBI)
assessments.

(c) $135,000 the first year and $135,000
the second year are for assessing mercury and other contaminants of fish,
including monitoring to track the status of impaired waters over time.

(d) $1,886,000 the first year and
$1,886,000 the second year are for developing targeted, science-based watershed
restoration and protection strategies.

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(e)
$1,700,000 the first year and $1,700,000 the second year are for water supply
planning, aquifer protection, and monitoring activities.

(f) $950,000 the first year and $950,000
the second year are for technical assistance to support local implementation of
nonpoint source restoration and protection activities.

(g) $675,000 the first year and $675,000
the second year are for applied research and tools, including watershed
hydrologic modeling; maintaining and updating spatial data for watershed
boundaries, streams, and water bodies and integrating high‑resolution
digital elevation data; and assessing effectiveness of forestry best management
practices for water quality.

(h) $125,000 the first year and $125,000
the second year are for developing county geologic atlases.

(i) $100,000 the first year and $100,000
the second year are for maintenance and updates to buffer maps and for
technical guidance on buffer map interpretation to local units of government
for implementation of buffer requirements.Maps must be provided to local units of government and made available to
landowners on the Department of Natural Resources' Web site.

Sec. 7.BOARD OF WATER AND SOIL
RESOURCES

$43,677,000

$50,081,000

(a) $2,925,000 the first year and
$7,525,000 the second year are for a pilot program to provide performance-based
grants to local government units.The
grants may be used to implement projects that protect, enhance, and restore
surface water quality in lakes, rivers, and streams; protect groundwater from
degradation; and protect drinking water sources.Projects must be identified in a
comprehensive watershed plan developed under the One Watershed, One Plan or
metropolitan surface water management frameworks or groundwater plans.Grant recipients must identify a nonstate
match and may use other legacy funds to supplement projects funded under this
paragraph.

(b) $11,923,000 the first year and
$12,577,000 the second year are for grants to protect and restore surface water
and drinking water; to keep water on the land; to protect, enhance, and restore
water quality in lakes, rivers, and streams; and to protect groundwater and
drinking water, including feedlot water quality and subsurface sewage treatment
system projects and stream bank, stream channel, shoreline restoration, and
ravine stabilization projects.The
projects must use practices demonstrated to be effective, be of long-lasting
public benefit, include a match, and be consistent with total maximum daily
load (TMDL) implementation plans, watershed restoration and protection
strategies (WRAPS), or local water management plans or their equivalents.A portion of these funds may be used to seek
administrative efficiencies through shared resources by multiple local
governmental units.

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(c)
$3,325,000 the first year and $4,275,000 the second year are for accelerated
implementation, including local resource protection and enhancement grants and
statewide program enhancements of supplements for technical assistance, citizen
and community outreach, compliance, and training and certification.

(d) $950,000 the first year and $950,000
the second year are to provide state oversight and accountability, evaluate
results, provide implementation tools, and measure the value of conservation
program implementation by local governments, including submission to the
legislature by March 1 each even-numbered year a biennial report prepared by the
board, in consultation with the commissioners of natural resources, health,
agriculture, and the Pollution Control Agency, detailing the recipients, the
projects funded under this section, and the amount of pollution reduced.

(e) $3,400,000 the first year and
$3,400,000 the second year are to provide assistance, oversight, and grants for
supporting local governments in implementing and complying with riparian
protection and excessive soil loss requirements.

(f) $6,000,000 the first year and
$6,000,000 the second year are to restore or preserve permanent conservation on
riparian buffers adjacent to lakes, rivers, streams, and tributaries, to keep
water on the land in order to decrease sediment, pollutant, and nutrient
transport; reduce hydrologic impacts to surface waters; and increase
infiltration for groundwater recharge.This
appropriation may be used for restoration of riparian buffers permanently
protected by easements purchased with this appropriation or contracts to
achieve permanent protection for riparian buffers or stream bank restorations
when the riparian buffers have been restored.Up to $1,920,000 is for deposit in a monitoring and enforcement account.

(g) $84,000 the first year and $84,000 the
second year are for a technical evaluation panel to conduct ten restoration
evaluations under Minnesota Statutes, section 114D.50, subdivision 6.

(h) $1,995,000 the first year and
$1,995,000 the second year are for assistance, oversight, and grants to local
governments to transition local water management plans to a watershed approach
as provided for in Minnesota Statutes, chapters 103B, 103C, 103D, and 114D.

(i) $750,000 the first year and $750,000
the second year are for technical assistance and grants for the conservation
drainage program in consultation with the Drainage Work Group, coordinated
under Minnesota Statutes, section 103B.101, subdivision 13, that includes
projects to improve multipurpose water management under Minnesota Statutes,
section 103E.015.

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(j)
$900,000 the first year and $1,100,000 the second year are to purchase
permanent conservation easements to protect lands adjacent to public waters
with good water quality but threatened with degradation.Up to $60,000 is for deposit in a monitoring
and enforcement account.

(k) $425,000 the first year and $425,000
the second year are for a program to systematically collect data and produce
county, watershed, and statewide estimates of soil erosion caused by water and
wind along with tracking adoption of conservation measures, including cover
crops, to address erosion.

(l) $11,000,000 the first year and
$11,000,000 the second year are for grants to soil and water conservation
districts to implement riparian protection requirements under Minnesota
Statutes, section 103F.48.

(m) The board shall contract for delivery
of services with Conservation Corps Minnesota for restoration, maintenance, and
other activities under this section for up to $500,000 the first year and up to
$500,000 the second year.

(n) The board may shift grant or
cost-share funds in this section and may adjust the technical and
administrative assistance portion of the funds to leverage federal or other
nonstate funds or to address oversight responsibilities or high-priority needs
identified in local water management plans.

(o) The board shall require grantees to
specify the outcomes that will be achieved by the grants prior to any grant
awards.

(p) The appropriations in this section are
available until June 30, 2022.Returned
grant funds are available until expended and shall be regranted consistent with
the purposes of this section.

Sec. 8.DEPARTMENT
OF HEALTH

$4,858,000

$4,857,000

(a) $1,100,000 the first year and
$1,100,000 the second year are for addressing public health concerns related to
contaminants found in Minnesota drinking water for which no health-based
drinking water standards exist, including accelerating the development of
health risk limits and improving the capacity of the department's laboratory to
analyze unregulated contaminants.

(b) $2,658,000 the first year and
$2,657,000 the second year are for protecting drinking water sources.

(c) $250,000 the first year and $250,000
the second year are for cost-share
assistance to public and private well owners for up to 50 percent of the
cost of sealing unused wells.

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(d)
$200,000 the first year and $200,000 the second year are to develop and deliver
groundwater restoration and protection strategies for use on a watershed scale
for use in local water planning efforts and to provide resources to local governments
for drinking water source protection activities.

(e) $400,000 the first year and $400,000
the second year are for studying the occurrence and magnitude of contaminants
in private wells and developing guidance and outreach to reduce risks to private-well
owners.

(f) $100,000 the first year and $100,000
the second year are for evaluating and addressing the risks from viruses in
water supplies.

(g) $150,000 the first year and $150,000
the second year are to develop public health policies and an action plan to
address threats to safe drinking water and to conduct an analysis to determine
the scope of the lead problem in Minnesota's water and the cost to eliminate
lead exposure in drinking water.

(h) Unless otherwise specified, the
appropriations in this section are available until June 30, 2021.

Sec. 9.METROPOLITAN
COUNCIL

$1,200,000

$1,200,000

(a) $950,000 the first year and $950,000
the second year are to implement projects that address emerging drinking-water
supply threats, provide cost-effective regional solutions, leverage
interjurisdictional coordination, support local implementation of water supply
reliability projects, and prevent degradation of groundwater resources in the
metropolitan area.These projects will
provide to communities:

(1) potential solutions to leverage
regional water use through use of surface water, storm water, wastewater, and
groundwater;

(2) an analysis of infrastructure
requirements for different alternatives;

(3) development of planning level cost estimates,
including capital cost and operation cost;

(4) identification of funding mechanisms
and an equitable cost‑sharing structure for regionally beneficial water
supply development projects; and

(5) development of subregional groundwater
models.

(b) $250,000 the first year and $250,000
the second year are for the water demand reduction grant program to encourage
implementation of water demand reduction measures by municipalities in the
metropolitan area to ensure the reliability and protection of drinking water
supplies.

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Sec. 10.UNIVERSITY
OF MINNESOTA

$1,008,000

$1,007,000

(a) $125,000 the first year and $125,000
the second year are for developing county geologic atlases.This appropriation is available until June
30, 2022.

(b) $750,000 the first year and $750,000
the second year are for a performance evaluation and technology transfer
program for storm water best management practices to enhance data and
information management of storm water best management practices; evaluate best
management performance and effectiveness to support meeting total maximum daily
loads; develop standards and incorporate state-of-the-art guidance using
minimal impact design standards as the model; and implement a knowledge and technology transfer system across local
government, industry, and regulatory sectors.This appropriation is available until June 30, 2020.

(c) $133,000 the first year and $132,000
the second year are to provide guidance documents and tools evaluating the
clean water fund's return on investment to measure impacts on water quality and
human well-being as well as assist in future funding decisions.

Sec. 11.REVENUE

$2,000,000

$2,000,000

$2,000,000 the first year and $2,000,000
the second year are for riparian protection aid payments under Minnesota
Statutes, section 477A.21.

Sec. 12.LEGISLATURE

$15,000

$15,000 the first year is for the
Legislative Coordinating Commission for the Web site required in Minnesota
Statutes, section 3.303, subdivision 10.

Subd. 4.Expenditures;
accountability.(a) A project
receiving funding from the clean water fund must meet or exceed the
constitutional requirements to protect, enhance, and restore water quality in
lakes, rivers, and streams and to protect groundwater and drinking water from
degradation.Priority may be given to
projects that meet more than one of these requirements.A project receiving funding from the clean water
fund shall include measurable outcomes, as defined in section 3.303,
subdivision 10, and a plan for measuring and evaluating the results.A project must be consistent with current
science and incorporate state-of-the-art technology.

(b) Money from the clean water fund shall
be expended to balance the benefits across all regions and residents of the
state.

(c) A state agency or other recipient of a
direct appropriation from the clean water fund must compile and submit all
information for proposed and funded projects or programs, including the
proposed measurable outcomes and all other items required under section 3.303,
subdivision 10, to the Legislative Coordinating Commission as soon as
practicable or by January 15 of the applicable fiscal year, whichever comes
first.The Legislative Coordinating
Commission must post submitted information on the Web site required under
section 3.303, subdivision 10, as soon as it becomes available.Information classified as not public under
section 13D.05, subdivision 3, paragraph (d), is not required to be placed on
the Web site.

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(d)
Grants funded by the clean water fund must be implemented according to section
16B.98 and must account for all expenditures.Proposals must specify a process for any regranting envisioned.Priority for grant proposals must be given to
proposals involving grants that will be competitively awarded.

(e) Money from the clean water fund may
only be spent on projects that benefit Minnesota waters.

(f) When practicable, a direct recipient of
an appropriation from the clean water fund shall prominently display on the
recipient's Web site home page the legacy logo required under Laws 2009,
chapter 172, article 5, section 10, as amended by Laws 2010, chapter 361,
article 3, section 5, accompanied by the phrase "Click here for more
information." When a person clicks
on the legacy logo image, the Web site must direct the person to a Web page
that includes both the contact information that a person may use to obtain
additional information, as well as a link to the Legislative Coordinating
Commission Web site required under section 3.303, subdivision 10.

(g) Future eligibility for money from the
clean water fund is contingent upon a state agency or other recipient
satisfying all applicable requirements in this section, as well as any
additional requirements contained in applicable session law.If the Office of the Legislative Auditor, in
the course of an audit or investigation, publicly reports that a recipient of
money from the clean water fund has not complied with the laws, rules, or
regulations in this section or other laws applicable to the recipient, the
recipient must be listed in an annual report to the legislative committees with
jurisdiction over the legacy funds.The
list must be publicly available.The
legislative auditor shall remove a recipient from the list upon determination
that the recipient is in compliance.A
recipient on the list is not eligible for future funding from the clean water
fund until the recipient demonstrates compliance to the legislative auditor.

(h) Money from the clean water fund may be
used to leverage federal funds through execution of formal project partnership
agreements with federal agencies consistent with respective federal agency
partnership agreement requirements.

(i) Any state agency or organization
requesting a direct appropriation from the clean water fund must inform the
Clean Water Council and the house of representatives and senate committees
having jurisdiction over the clean water fund, at the time the request for
funding is made, whether the request is supplanting or is a substitution for
any previous funding that was not from a legacy fund and was used for the same
purpose.

Subd. 2.Certifications
to commissioner.(a) The
Board of Water and Soil Resources must certify to the commissioner of revenue,
on or before July 1 each year, which counties and watershed districts have
affirmed their jurisdiction under section 103F.48 and the proportion of
centerline miles of public watercourses, and miles of public drainage system
ditches on the buffer protection map, within each county and each watershed
district within the county with affirmed jurisdiction.

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(b)
On or before July 1 each year, the commissioner of natural resources shall
certify to the commissioner of revenue the statewide and countywide number of
centerline miles of public watercourses and miles of public drainage system
ditches on the buffer protection map.

Subd. 3.Distribution.(a) A county that is certified under
subdivision 2, or that portion of a county containing a watershed district
certified under subdivision 2, is eligible to receive aid under this section to
enforce and implement the riparian protection and water quality practices under
section 103F.48.Each county's
preliminary aid amount is equal to the proportion calculated under paragraph
(b) multiplied by the appropriation received each year by the commissioner for
purposes of payments under this section.

(b) The commissioner must compute each
county's proportion.A county's
proportion is equal to the ratio of the sum in clause (1) to the sum in clause
(2):

(1) the sum of the total number of
acres in the county classified as class 2a under section 273.13, subdivision
23, the countywide number of centerline miles of public watercourses on the
buffer protection map, and the countywide number of miles of public drainage
system ditches on the buffer protection map; and

(2) the sum of the statewide total
number of acres classified as class 2a under section 273.13, subdivision 23,
the statewide total number of centerline miles of public watercourses on the
buffer protection map, and the statewide total number of public drainage system
miles on the buffer protection map.

(c) Aid to a county must not be greater
than $200,000 or less than $50,000.If
the sum of the preliminary aids payable to counties under paragraph (a) is
greater or less than the appropriation under subdivision 5, the commissioner of
revenue must calculate the percentage of adjustment necessary so that the total
of the aid under paragraph (a) equals the total amount available for aid under
subdivision 5, subject to the minimum and maximum amounts specified in this
paragraph.The minimum and maximum
amounts under this paragraph must be adjusted by the ratio of the actual amount
appropriated to $10,000,000.

(d) If only a portion of a county is
certified as eligible to receive aid under subdivision 2, the aid otherwise
payable to that county under this section must be multiplied by a fraction, the
numerator of which is the buffer protection map miles of the certified
watershed districts contained within the county and the denominator of which is
the total buffer protection map miles of the county.

(e)
Any aid that would otherwise be paid to a county or portion of a county that is
not certified under subdivision 2 shall be paid to the Board of Water
and Soil Resources for enforcing and implementing the riparian protection and
water quality practices under section 103F.48.

Subd. 4.Payments.The commissioner of revenue must
compute the amount of riparian protection aid payable to each eligible county
and to the Board of Water and Soil Resources under this section.On or before August 1 each year, the
commissioner must certify the amount to be paid to each county and the Board of
Water and Soil Resources in the following year, except that the payments for
2017 must be certified by July 15, 2017.The commissioner must pay riparian protection aid to counties and to the
Board of Water and Soil Resources in the same manner and at the same time as
aid payments under section 477A.015.

EFFECTIVE
DATE.This section is
effective the day following final enactment and applies to aids payable in 2017
and thereafter.

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ARTICLE
3

PARKS
AND TRAILS FUND

Section 1.PARKS
AND TRAILS FUND APPROPRIATIONS.

The sums shown in the columns marked "Appropriations"
are appropriated to the agencies and for the purposes specified in this article.The appropriations are from the parks and
trails fund and are available for the fiscal years indicated for each purpose.The figures "2018" and
"2019" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2018, or June 30, 2019,
respectively."The first year"
is fiscal year 2018."The second
year" is fiscal year 2019."The
biennium" is fiscal years 2018 and 2019.All appropriations in this article are onetime.

APPROPRIATIONS

Available for the Year

Ending June 30

2018

2019

Sec. 2.PARKS
AND TRAILS

Subdivision 1.Total
Appropriation

$41,988,000

$47,775,000

The amounts that may be spent for each
purpose are specified in the following sections.

Subd. 2.Availability
of Appropriation

Money appropriated in this article may not
be spent on activities unless they are directly related to and necessary for a
specific appropriation.Money
appropriated in this article must be spent in accordance with Minnesota
Management and Budget's Guidance to Agencies on Legacy Fund Expenditure.Notwithstanding Minnesota Statutes, section
16A.28, and unless otherwise specified in this article, fiscal year 2018
appropriations are available until June 30, 2020, and fiscal year 2019
appropriations are available until June 30, 2021.If a project receives federal funds, the time
period of the appropriation is extended to equal the availability of federal
funding.

Subd. 3.Disability
Access

Where appropriate, grant recipients of
parks and trails funds, in consultation with the Council on Disability and
other appropriate governor-appointed disability councils, boards, committees,
and commissions, should make progress toward providing greater access to
programs, print publications, and digital media for people with disabilities
related to the programs the recipient funds using appropriations made in this
article.

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Sec. 3.DEPARTMENT
OF NATURAL RESOURCES

$25,397,000

$28,884,000

(a) $16,584,000 the first year and
$18,891,000 the second year are for state parks, recreation areas, and trails
to:

(b) $8,292,000 the first year and
$9,445,000 the second year are for grants for parks and trails of regional
significance outside the seven-county metropolitan area under Minnesota
Statutes, section 85.535.The grants
must be based on the recommendations to the commissioner from the Greater
Minnesota Regional Parks and Trails Commission established under Minnesota
Statutes, section 85.536.Grants funded
under this paragraph must support parks and trails of regional or statewide
significance that meet the applicable definitions and criteria for regional
parks and trails contained in the Greater Minnesota Regional Parks and Trails
Strategic Plan adopted by the Greater Minnesota Regional Parks and Trails
Commission on April 22, 2015.Grant
recipients identified under this paragraph must submit a grant application to
the commissioner of natural resources.Up
to 2.5 percent of the appropriation may be used by the commissioner for the
actual cost of issuing and monitoring the grants for the commission.Of the amount appropriated, $424,000 the
first year and $399,000 the second year are for the Greater Minnesota Regional
Parks and Trails Commission to carry out its duties under Minnesota Statutes,
section 85.536, including the continued development of a statewide system plan
for regional parks and trails outside the seven-county metropolitan area.

(c) By January 15, 2018, the Greater
Minnesota Regional Parks and Trails Commission shall submit a list of projects,
ranked in priority order, that contains the commission's recommendations for
funding from the parks and trails fund for fiscal year 2019 to the chairs and
ranking minority members of the house of representatives and senate committees
and divisions with jurisdiction over the environment and natural resources and
the parks and trails fund.

(d) By January 15, 2018, the Greater Minnesota
Regional Parks and Trails Commission shall submit a report that contains the
commission's criteria for funding from the parks and trails fund, including the
criteria used to determine if a park or trail is of regional significance, to
the chairs and ranking minority members

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of
the house of representatives and senate committees and divisions with
jurisdiction over the environment and natural resources and the parks and
trails fund.

(e) $521,000 the first year and $548,000
the second year are for coordination and projects between the department, the
Metropolitan Council, and the Greater Minnesota Regional Parks and Trails
Commission; enhanced Web-based information for park and trail users; and
support of activities of the Parks and Trails Legacy Advisory Committee.

(f) The commissioner shall contract for
services with Conservation Corps Minnesota for restoration, maintenance, and
other activities under this section for at least $1,000,000 the first year and
$1,000,000 the second year.

(g) The implementing agencies receiving
appropriations under this section shall give consideration to contracting with
Conservation Corps Minnesota for restoration, maintenance, and other
activities.

Sec. 4.METROPOLITAN
COUNCIL

$16,584,000

$18,891,000

(a) $16,584,000 the first year and
$18,891,000 the second year are for distribution according to Minnesota
Statutes, section 85.53, subdivision 3.

(b) Money appropriated under this section
and distributed to implementing agencies must be used to fund the list of
recommended projects in the report submitted pursuant to Laws 2013, chapter
137, article 3, section 4, paragraph (o).Projects funded by the money appropriated under this section must be
substantially consistent with the project descriptions and dollar amounts in
the report.Any funds remaining after
completion of the listed projects may be spent by the implementing agencies on
projects to support parks and trails.

(c) Grant agreements entered into by the
Metropolitan Council and recipients of money appropriated under this section
must ensure that the funds are used to supplement and not substitute for
traditional sources of funding.

(d) The implementing agencies receiving
appropriations under this section shall give consideration to contracting with
Conservation Corps Minnesota for restoration, maintenance, and other
activities.

Sec. 5.LEGISLATURE

$7,000

$7,000 the first year is for the
Legislative Coordinating Commission for the Web site required in Minnesota
Statutes, section 3.303, subdivision 10.

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Subd. 6.Reserve
requirement.In any fiscal
year, at least five percent of that year's projected tax receipts determined by
the most recent forecast for the parks and trails fund must not be
appropriated.

Sec. 7.SAUK
RIVER REGIONAL PARK GRANT EXTENSION.

The appropriation in Laws 2013, chapter
137, article 3, section 3, paragraph (c), clause (9), from the parks and trails
fund for trail enhancement, land acquisition, and other improvements at Sauk
River Regional Park is available until June 30, 2022.

EFFECTIVE
DATE.This section is
effective retroactively from June 30, 2016.

Sec. 8.HYLAND-BUSH-ANDERSON
LAKES PARK RESERVE GRANT EXTENSION.

The
appropriations for fiscal years 2014 and 2015 in Laws 2013, chapter 137,
article 3, section 4, paragraph (c), from the parks and trails fund for grants
to the city of Bloomington to reconstruct parking lots at the
Hyland-Bush-Anderson Lakes Park Reserve are available until June 30,
2018.

EFFECTIVE
DATE.This section is
effective retroactively from June 30, 2016.

(1) Anoka County may allocate $438,000
of its share of the distribution for fiscal year 2017 funds under Minnesota
Statutes, section 85.53, subdivision 3, to Bunker Hills Regional Park in
accordance with the most recent priority rankings that Anoka County has
submitted to the Metropolitan Council; and

(2) Dakota County may allocate $180,000
of its share of the distribution under Minnesota Statutes, section 85.53, subdivision
3, designated for the Vermillion River Regional Greenway to the phase 2
improvement to Whitetail Woods Regional Park in Dakota County.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

ARTICLE
4

ARTS
AND CULTURAL HERITAGE FUND

Section 1.ARTS
AND CULTURAL HERITAGE FUND APPROPRIATIONS.

The sums shown in the columns marked
"Appropriations" are appropriated to the entities and for the
purposes specified in this article.The
appropriations are from the arts and cultural heritage fund and are available
for the fiscal years indicated for allowable activities under the Minnesota
Constitution, article XI, section 15.The
figures "2018" and "2019" used in this article mean that
the appropriations listed under the figure are available for the fiscal year
ending June 30, 2018, and June 30, 2019, respectively."The first year" is fiscal year
2018."The second year" is
fiscal year 2019."The
biennium" is fiscal years 2018 and 2019.All appropriations in this article are onetime.

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APPROPRIATIONS

Available for the Year

Ending June 30

2018

2019

Sec. 2.ARTS
AND CULTURAL HERITAGE

Subdivision 1.Total
Appropriation

$57,331,000

$66,033,000

The amounts that may be spent for each
purpose are specified in the following subdivisions.

Subd. 2.Availability
of Appropriation

Money appropriated in this article may not
be spent on activities unless they are directly related to and necessary for a
specific appropriation.Money appropriated
in this article must not be spent on institutional overhead charges that are
not directly related to and necessary for a specific appropriation.Money appropriated in this article must be
spent in accordance with the Minnesota Management and Budget's Guidance to
Agencies on Legacy Fund Expenditures.Notwithstanding
Minnesota Statutes, section 16A.28, and unless otherwise specified in this
article, fiscal year 2018 appropriations are available until June 30, 2019, and
fiscal year 2019 appropriations are available until June 30, 2020.If a project receives federal funds, the
period of the appropriation is extended to equal the availability of federal
funding.

Subd. 3.Minnesota
State Arts Board

25,855,000

32,112,000

(a) These amounts are appropriated to the
Minnesota State Arts Board for arts, arts education, arts preservation, and
arts access.Grant agreements entered
into by the Minnesota State Arts Board and other recipients of appropriations
in this subdivision must ensure that these funds are used to supplement and not
substitute for traditional sources of funding.Each grant program established in this appropriation must be separately
administered from other state appropriations for program planning and outcome
measurements, but may take into consideration other state resources awarded in the selection of applicants
and grant award size.

(b)Arts and Arts Access Initiatives

$19,000,000 the first year and $25,342,000
the second year are to support Minnesota artists and arts organizations in
creating, producing, and presenting high-quality arts activities; to overcome
barriers to accessing high-quality arts activities; and to instill the arts
into the community and public life in this state.

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(c)
Arts Education

$4,500,000 the first year and $4,500,000
the second year are for high-quality, age-appropriate arts education for
Minnesotans of all ages to develop knowledge, skills, and understanding of the
arts.

(d)Arts and Cultural Heritage

$1,500,000 the first year and $1,500,000
the second year are for events and activities that represent the diverse
cultural arts traditions, including folk and traditional artists and art
organizations, represented in this state.

(e)Grants

$30,000 the first year and $20,000 the
second year are for grants to an organization for designing, consulting,
creating, and administering a statewide arts software application to be used on
electronic and mobile electronic devices to locate and access artists, arts
organizations, and art education programs throughout Minnesota.The grantee must work in consultation with
the Minnesota State Arts Board, regional arts councils, private and nonprofit
arts organizations, and the regional library system to develop criteria for
content to import to the software application and must make the application
free to download.A portion of the
funding may be used to pay the ongoing costs associated with developing content
and updating the software or with contracting to develop and update the
software and expand electronic content in fiscal years 2018 and 2019.

$250,000 each year is for a grant to the
Minnesota China Friendship Garden Society for the Chinese garden in Phalen Park
in St. Paul to recognize the rich cultural heritage of the Chinese and
Hmong in Minnesota.Grant recipients
must provide a funding match of at least 25 percent of the total eligible
project costs.

$375,000 each year is for a grant to
Springboard for the Arts to design and construct up to two statues of Dan Patch
to be placed at the Minnesota State Fairgrounds and the city of Savage.Grant recipients must provide a funding match
of at least 25 percent of the total eligible project costs.

$125,000 each year is for a Fanka arts
grant program to one or more community organizations that participate in
statewide Somali arts and cultural programs that provide arts education,
workshops, mentor programs, or community presentations and community engagement
events.

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$75,000
the first year is for a grant to the Hmong Cultural Center for an interactive
Hmong Folk Art in Minnesota exhibit.

(f) Up to 4.5 percent of the funds
appropriated in paragraphs (b) to (d) may be used by the board for
administering grant programs, delivering technical services, providing fiscal
oversight for the statewide system, and ensuring accountability.

(g) Up to 30 percent of the remaining total
appropriation to each of the categories listed in paragraphs (b) to (d) is for
grants to the regional arts councils.Notwithstanding
any other provision of law, regional arts council grants or other arts council
grants for touring programs, projects, or exhibits must ensure the programs,
projects, or exhibits are able to tour in their own region as well as all other
regions of the state.

(h) Any unencumbered balance remaining
under this subdivision the first year does not cancel but is available the
second year.

Subd. 4.Minnesota
Historical Society

12,350,000

14,750,000

(a) These amounts are appropriated to the
governing board of the Minnesota Historical Society to preserve and enhance
access to Minnesota's history and its cultural and historical resources.Grant agreements entered into by the
Minnesota Historical Society and other recipients of appropriations in this
subdivision must ensure that these funds are used to supplement and not
substitute for traditional sources of funding.Funds directly appropriated to the Minnesota Historical Society must be
used to supplement and not substitute for traditional sources of funding.Notwithstanding Minnesota Statutes, section
16A.28, for historic preservation projects that improve historic structures,
the amounts are available until June 30, 2020.The Minnesota Historical Society or grant recipients of the Minnesota
Historical Society using arts and cultural heritage funds under this
subdivision must give consideration to Conservation Corps Minnesota and
Northern Bedrock Historic Preservation Corps, or an organization carrying out
similar work, for projects with the potential to need historic preservation
services.

(b)Historical Grants and Programs

(1) Statewide Historic and
Cultural Grants

$4,500,000 the first year and $5,500,000
the second year are for history programs and projects operated or conducted by
or through local, county, regional, or other historical or cultural
organizations or for activities to preserve significant historic and cultural
resources.Funds are to be distributed
through a competitive grant process.The
Minnesota Historical Society must administer these funds using established
grant mechanisms, with assistance from the advisory committee created under
Laws 2009, chapter 172, article 4, section 2, subdivision 4, paragraph (b),
item (ii).

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Of
this amount, $300,000 the first year is for a grant to the Fairmont Opera House
for restoration and renovation of historic Fairmont Opera House.

(2) Statewide History Programs

$4,625,000 the first year and $6,125,000
the second year are for programs and purposes related to the historical and
cultural heritage of the state of Minnesota conducted by the Minnesota
Historical Society.

(3) History Partnerships

$2,000,000 the first year and $2,000,000
the second year are for partnerships involving multiple organizations, which
may include the Minnesota Historical Society, to preserve and enhance access to
Minnesota's history and cultural heritage in all regions of the state.

(4) Statewide Survey of
Historical and Archaeological Sites

$500,000 the first year and $500,000 the
second year are for a contract or contracts to be awarded on a competitive
basis to conduct statewide surveys of Minnesota's sites of historical,
archaeological, and cultural significance.Results of the surveys must be published in a searchable form and
available to the public free of cost.The
Minnesota Historical Society, the Office of the State Archaeologist, and the
Indian Affairs Council must each appoint a representative to an oversight board
to select contractors and direct the conduct of the surveys.The oversight board must consult with the
Departments of Transportation and Natural Resources.

(5) Digital Library

$375,000 the first year and $375,000 the
second year are for a digital library project to preserve, digitize, and share
Minnesota images, documents, and historical materials.The Minnesota Historical Society must
cooperate with the Minitex interlibrary loan system and must jointly share this
appropriation for these purposes.

(6) Grants

$125,000 each year is for a grant to the
board of directors of the Carver County Historical Society to restore the
historic Andrew Peterson farm in Waconia.

$125,000 each year is for a grant to the
Woodbury Barn Heritage Commission to restore the Miller Barn and historical
programming at the Miller Barn in Woodbury.

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$100,000
the first year is to restore the stained glass in the historic Fort Snelling
Memorial Chapel in Bloomington.The
historical society may work in collaboration with the Fort Snelling Memorial
Chapel Foundation.

Subd. 5.Department
of Education

2,750,000

2,500,000

These amounts are appropriated to the
commissioner of education for grants to the 12 Minnesota regional library
systems to provide educational opportunities in the arts, history, literary
arts, and cultural heritage of Minnesota.These funds must be allocated using the formulas in Minnesota Statutes,
section 134.355, subdivisions 3, 4, and 5, with the remaining 25 percent to be
distributed to all qualifying systems in an amount proportionate to the number
of qualifying system entities in each system.For purposes of this subdivision, "qualifying system entity"
means a public library, a regional library system, a regional library system
headquarters, a county, or an outreach service program.These funds may be used to sponsor programs
provided by regional libraries or to provide grants to local arts and cultural
heritage programs for programs in partnership with regional libraries.These funds must be distributed in ten equal
payments per year.Notwithstanding
Minnesota Statutes, section 16A.28, the appropriations encumbered on or before
June 30, 2019, as grants or contracts in this subdivision are available until
June 30, 2020.

Subd. 6.Department
of Administration

10,242,000

10,341,000

(a) These amounts are appropriated to the
commissioner of administration for grants to the named organizations for the
purposes specified in this subdivision.The
commissioner of administration may use a portion of this appropriation for
costs that are directly related to and necessary to the administration of
grants in this subdivision.

(b) Grant agreements entered into by the
commissioner and recipients of appropriations under this subdivision must
ensure that money appropriated in this subdivision is used to supplement and not
substitute for traditional sources of funding.

(c)Veterans Rest Camp

$278,000 the second year is for the
Disabled Veterans Rest Camp Association for a welcome center for the veterans
rest camp on Big Marine Lake.

(d)Minnesota Public Radio

$1,650,000 each year is for Minnesota
Public Radio to create programming and expand news service on Minnesota's
cultural heritage and history.

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(e)
Association of Minnesota Public
Educational Radio Stations

$1,600,000 each year is to the Association
of Minnesota Public Educational Radio Stations for production and acquisition
grants in accordance with Minnesota Statutes, section 129D.19.

(f)Public Television

$4,000,000 the first year and $4,000,000
the second year are to the Minnesota Public Television Association for
production and acquisition grants according to Minnesota Statutes, section
129D.18.

Of this amount, $650,000 the first year is
for Twin Cities Public Television to produce the Vietnam:Minnesota Remembers project.Any production costs associated with the
project incurred on or after February 1, 2017, are eligible for reimbursement
under this section.

(g)Wilderness Inquiry

$300,000 each year is to Wilderness
Inquiry to preserve Minnesota's outdoor history, culture, and heritage by
connecting Minnesota youth to natural resources.

(h)Como Park Zoo

$1,400,000 the first year and $1,500,000
the second year are for the Como Park Zoo for program development that features
education programs and habitat enhancement, special exhibits, music
appreciation programs, and historical garden access and preservation.

(i)Science Museum of Minnesota

$600,000 each year is to the Science
Museum of Minnesota for arts, arts education, and arts access and to preserve
Minnesota's history and cultural heritage, including student and teacher
outreach, statewide educational initiatives, and community-based exhibits that
preserve Minnesota's history and cultural heritage.

(j)Lake Superior Center Authority

$150,000 each year is to the Lake Superior
Center Authority to develop, prepare, and construct an exhibit on river
systems.

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(k)
Green Giant Museum

$300,000 the first year is to the city of
Blue Earth to predesign, design, construct, furnish, and equip the Green Giant
Museum to preserve the culture and history of Minnesota.

(l)Lake Superior Zoo

$75,000 each year is to the Lake Superior
Zoo to develop educational exhibits and programs.

(m)Minnesota State Band

$25,000 each year is to the Minnesota State
Band to promote and increase public performances across Minnesota.

(n)Rice County Veterans Memorial

$30,000 the first year is to Rice County to
complete the Rice County Veterans Memorial in Faribault.

(o)Minnesota Square Park Pavilion

$112,000 the first year and $113,000 the
second year are to the city of St. Peter to reconstruct the Minnesota
Square Park pavilion in St. Peter.

(p)Waseca County Veterans Memorial

$50,000 the second year is to Waseca County
to complete the Waseca County Veterans Memorial.

Subd. 7.Minnesota
Zoo

1,775,000

1,850,000

These amounts are appropriated to the
Minnesota Zoological Board for programs and development of the Minnesota
Zoological Garden and to provide access and education related to programs on
the cultural heritage of Minnesota.

Subd. 8.Minnesota
Humanities Center

2,575,000

2,705,000

(a) These amounts are appropriated to the
Board of Directors of the Minnesota Humanities Center for the purposes
specified in this subdivision.The Minnesota Humanities Center may use up to
4.5 percent of the following grants to cover the cost of administering,
planning, evaluating, and reporting these grants.The Minnesota Humanities Center must develop
a written plan to issue the grants in this subdivision and must submit the plan
for review and approval by the Department of Administration.The written plan must require the Minnesota
Humanities Center to create and adhere to grant policies that are similar to
those established according to Minnesota Statutes, section 16B.97, subdivision
4, paragraph (a), clause (1).

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No
grants awarded in this subdivision may be used for travel outside the state of
Minnesota.The grant agreement must
specify the repercussions for failing to comply with the grant agreement.

(b)Programs and Purposes

$1,125,000 each year is for programs and
purposes of the Minnesota Humanities Center.Of this amount, $125,000 each year may be used for the Why Treaties
Matter exhibit.

The Minnesota Humanities Center may
consider museums and organizations celebrating the identities of Minnesotans
for grants from these funds.

Of this amount, $55,000 the first year is
for a grant to the Minnesota Council on Disability to enhance and enlarge the
historical digital archives collection "With An Eye to the Past" for
oral history interviews and document collection, production, consultation,
transcription, closed captioning, Web site administration, and evaluation.

(c)Community Identity and Heritage Grant Program

$100,000 the first year and $250,000 the
second year are for a competitive grants program to provide grants to preserve
and promote the cultural heritage of Minnesota.

Of this amount, up to $150,000 the second
year is for a grant to the city of St. Paul or Ramsey County to develop
and install activity facilities in parks for Tawkaw Courts that are reflective
of the current demographics in Ramsey County.This grant is available if the recipient provides at least a 25 percent
match for funding.

The Minnesota Humanities Center must
operate a competitive grants program to provide grants to programs, including
but not limited to music, film, television, radio, recreation, and design and
use of public spaces that preserve and honor the cultural heritage of Minnesota
or that provide education and student outreach on cultural diversity or to
programs that empower communities to build their identity and culture.Grants made under this paragraph must not be
used for travel costs inside or outside the state.

(d)Children's Museum Grants

$1,030,000 the first year and $1,110,000
the second year are for arts and cultural heritage grants to children's museums
for arts and cultural exhibits and related educational outreach programs.

Of this amount, $500,000 each year is for
the Minnesota Children's Museum for interactive exhibits and outreach programs
on arts and cultural heritage, including the Minnesota Children's Museum in

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Rochester;
$150,000 each year is for the Duluth Children's Museum for interactive exhibits
and outreach programs on arts and cultural heritage; $150,000 each year is for
the Grand Rapids Children's Museum for interactive exhibits and outreach
programs on arts and cultural heritage; $150,000 each year is for the Southern
Minnesota Children's Museum for the Mni Wiconi and other arts and cultural
exhibits; and $80,000 the second year is for the Wheel and Cog Children's
Museum of Hutchinson for interactive exhibits and outreach programs on arts and
cultural heritage.

(e)Civics Programs

$200,000 each year is for grants to the
Minnesota Civic Education Coalition:Minnesota
Civic Youth, the Learning Law and Democracy Foundation, and YMCA Youth in
Government to conduct civics education programs for the civic and cultural
development of Minnesota youth.Civics
education is the study of constitutional principles and the democratic
foundation of our national, state, and local institutions and the study of
political processes and structures of government, grounded in the understanding
of constitutional government under the rule of law.

(f)Somali Museum of Minnesota

$100,000 each year is for a grant to the
Somali Museum of Minnesota for the Heritage Arts and Cultural Vitality programs
for classes, exhibits, presentations, and outreach about the Somali community
and heritage in Minnesota.

(g)Rondo Commemorative Plaza

$100,000 the first year is for a grant to
Rondo Avenue, Inc. for the Rondo Commemorative Plaza to celebrate the historic
Rondo neighborhood.

Subd. 9.Indian
Affairs Council

1,275,000

1,275,000

(a) $900,000 each year is for the Indian
Affairs Council to provide grants to preserve Dakota and Ojibwe Indian language
and to foster education programs and immersion programs in Dakota and Ojibwe
language.

(b) $125,000 each year is to the Indian
Affairs Council for a grant to the Niiganne Ojibwe Immersion School.

(c) $250,000 each year is to the Indian
Affairs Council for a grant to the Wicoie Nandagikendan Urban Immersion Project
and potentially Baby's Space and other partners at the Neighborhood Early
Learning Center.Wicoie Nandagikendan
Urban Immersion Project shall work in coordination with the Indian Affairs
Council to develop capacity and implement a language immersion program with
Baby's Space and other partners.

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Subd. 10.Department
of Agriculture

500,000

500,000

These amounts are appropriated to the
commissioner of agriculture for grants to county agricultural societies to
enhance arts access and education and to preserve and promote Minnesota's
history and cultural heritage as embodied in its county fairs.The grants are in addition to the aid
distribution to county agricultural societies under Minnesota Statutes, section
38.02.The commissioner of agriculture
shall develop grant-making criteria and guidance for expending funds under this
subdivision.The commissioner shall seek
input from all interested parties.

Of this amount, $200,000 each year is
distributed in equal amounts to each of the 95 county fairs to enhance arts
access and education and to preserve and promote Minnesota's history and
cultural heritage.

Of this amount, $200,000 each year is
distributed as competitive grants for developing or enhancing facilities that
provide access to arts, arts education, and agriculture or historical and
cultural heritage programs.

Of this amount, $100,000 each year is
distributed as competitive grants for specific projects and events that provide
access to the arts or the state's agricultural, historical, and cultural
heritage.

Subd. 11.Legislative
Coordinating Commission

9,000

-0-

This amount is for the Legislative
Coordinating Commission to maintain the Web site required under Minnesota
Statutes, section 3.303, subdivision 10.

Subd. 4.Minnesota
State Arts Board allocation.At
least 47 percent of the money deposited in thetotal appropriations
from the arts and cultural heritage fund in a fiscal biennium must
be for grants and services awarded through the Minnesota State Arts Board, or
regional arts councils subject to appropriation.

Subd. 5.Reserve
requirement.In any fiscal
year, at least five percent of that year's projected tax receipts determined by
the most recent forecast for the arts and cultural heritage fund must not be
appropriated.

(a) Entities receiving $1,000,000 or
more in arts and cultural heritage funds for programming or projects in this
article must provide a portion of funding, through their own operating budget
or using the percentage of arts and cultural heritage funds necessary, to
create measurable goals and outcomes to increase access to programs and reduce
disparities for access to programs funded by the arts and cultural heritage
fund.Each entity required to comply
with this section shall designate an employee to be responsible for the
requirements of this section.Measurable
goals may include:

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(1)
providing outreach or programming in different languages;

(2) improving access for individuals with disabilities
and improving compliance with the Americans with Disabilities Act;

(3) improving access to programs in different regions of
the state or assisting community members in regions of the state that are traditionally
underserved in accessing programs;

(4) increasing access to individuals of different ages
or from different races or cultures than have traditionally accessed the
programs provided by the entity receiving funds; and

(5) improving access to low-income individuals and
families, including providing free and reduced-cost programming to those
individuals and families and to schools with a high percentage of students who
receive free or reduced-price lunch.

(b) The funding must be used to create measurable goals
and outcomes, to measure those goals, and to provide a written report to the
house of representatives and senate committees with jurisdiction over the arts
and cultural heritage fund by December 15, 2018."

Subd. 2.Cash
sale price."Cash sale
price" means the price at which the seller would in good faith sell to the
buyer, and the buyer would in good faith buy from the seller, the motor vehicle
which is the subject matter of the retail installment contract, if such sale
were a sale for cash, instead of a retail installment sale.The cash sale price may include any taxes,
charges for delivery, servicing, repairing, or improving the motor vehicle, including
accessories and their installation, and any other charges agreed upon between
the parties.The cash price may not
include a documentary fee or document administration fee in excess of $75
for services actually rendered to, for, or on behalf of, the retail buyer in
preparing, handling, and processing documents relating to the motor vehicle and
the closing of the retail saleauthorized under section 168.27,
subdivision 31."Documentary
fee" and "document administration fee" do not include an
optional electronic transfer fee as defined under subdivision 14."

Subd. 2.Appraisal.(a) Before commencing an eminent domain
proceeding under this chapter for an acquisition greater than $25,000, the
acquiring authority must obtain at least one appraisal for the property
proposed to be acquired.In making the
appraisal, the appraiser must confer with one or more of the owners of the
property, if reasonably possible.For
acquisitions less than $25,000, the acquiring authority may obtain a minimum
damage acquisition report in lieu of an appraisal.In making the minimum damage acquisition
report, the qualified person with appraisal knowledge must confer with one or
more of the owners of the property, if reasonably possible.Notwithstanding section 13.44, the acquiring
authority must provide the owner with a copy of (1) each appraisal for property
acquisitions over $25,000, or (2) the minimum damage acquisition report for
properties under $25,000, the acquiring authority has obtained for the property
at the time an offer is made, but no later than 60 days before presenting a
petition under section 117.055.The
acquiring authority must also inform the owner of the right to obtain an
appraisal under this section.Upon
request, the acquiring authority must make available to the owner all
appraisals for properties over $25,000, or the minimum damage acquisition
report for properties under $25,000. If
the acquiring authority is considering both a full and partial taking of the
property, the acquiring authority shall obtain and provide the owner with
appraisals for properties over $25,000 for both types of takings, or minimum
damage acquisition reports for properties under $25,000.

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(b)
The owner may obtain an appraisal by a qualified appraiser of the property
proposed to be acquired.The owner is
entitled to reimbursement for the reasonable costs of the appraisal from the
acquiring authority up to a maximum of $1,500 for single family and two-family
residential property and minimum damage acquisitions and $5,000$20,000
for other types of property, provided that the owner submits to the acquiring
authority the information necessary for reimbursement, including a copy of the
owner's appraisal, at least five days before a condemnation commissioners'
hearing.For purposes of this
subdivision, a "minimum damage acquisition" means an interest in
property that a qualified person having an understanding of the local real
estate market indicates can be acquired for $25,000 or less.

(c) The acquiring authority must pay the
reimbursement to the owner within 30 days after receiving a copy of the
appraisal and the reimbursement information.Upon agreement between the acquiring authority and the owner, the
acquiring authority may pay the reimbursement directly to the appraiser.

EFFECTIVE
DATE.This section is
effective the day following final enactment."

Subd. 31.Documentary
fee.A motor vehicle dealer
may not charge a documentary fee or document administration fee in excess of
$150 for services actually rendered to, for, or on behalf of the retail buyer
or lessee to prepare, handle, and process documents for the closing of a motor
vehicle retail sale or lease.The fee
must be separately stated on the sales agreement maintained under Minnesota
Rules, part 7400.5200, and may be excluded from the dealer's advertised price."Documentary fee" and
"document administration fee" do not include an optional electronic
transfer fee as defined under section 53C.01, subdivision 14."

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Page
9, after line 17, insert:

"(e) Notwithstanding Minnesota
Statutes, section 115B.421, $4,000,000 the first year is from the closed
landfill investment fund for remedial investigations, feasibility studies,
engineering, and cleanup-related activities for purposes of indemnification
agreements and environmental response actions at a qualified facility under Minnesota Statutes, section
115B.431.By January 15, 2018,
the commissioner must submit a status report to the chairs and ranking minority
members of the house of representatives and senate committees and divisions
with jurisdiction over the environment and natural resources.This is a onetime appropriation and is
available until June 30, 2019."

Page 32, after line 12, insert:

"Section 1.[15.0541]
NO NET GAIN; COUNTIES.

(a) A county located in whole or in
part north of U.S. Highway 2 may file a no-net-gain of state lands policy,
adopted by the county board, with the commissioner of natural resources.The policy must express the county's policy
against the acquisition of additional land by the state in the county.

(b) When a state agency acquires
private land in a county that has filed a no-net-gain of state lands policy
under this section, the commissioner of natural resources, for lands acquired
by the commissioner, or the commissioner of administration, for lands acquired
by another state agency, must sell to a private individual or entity an equal
or greater number of acres of land in the county.The value of the land sold must be of at
least substantially equal value of the lands acquired.Notwithstanding section 94.10, subdivision 2,
if lands being offered for sale to comply with this section remain unsold after
a public sale offering, the lands may be sold for less than the appraised value.Land sold under this paragraph must not be
sold for less than 75 percent of the appraised value.

(c) For the purposes of this section,
the following terms have the meanings given:

(1) "agency" has the meaning
given under section 16B.01, subdivision 2, excluding the Department of
Transportation and including the Minnesota State Colleges and Universities; and

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Page
60, delete section 39

Page 98, line 31, after the period, insert
"The Crosswinds facilities must be conveyed for no less than
$10,000,000."

Page 108, after line 2, insert:

"(d) The director must establish
written procedures to ensure that the director's employees or independent
contractors have access to private data only if authorized.The director may authorize an employee or
independent contractor to access private data only if access is necessary to
fulfill official duties.All actions in
which private data are entered, updated, accessed, shared, or disseminated must
be recorded in a data audit trail.Data
contained in the audit trail are public to the extent that the data are not
otherwise classified by law."

Page 108, line 4, after "education"
insert "in the senate and house of representatives,"

Page 108, line 7, delete "and"

Page 108, line 8, after "granted"
insert ", and the number of children whose parent or guardian did not
consent to sharing private data with the director"

Page 121, after line 4, insert:

"Sec. 23.SCHOOL
READINESS ADJUSTMENT.

(a) The amounts in paragraphs (b) and
(c) must be added to a district's school readiness aid under Minnesota
Statutes, section 124D.16.

(b) For fiscal year 2018, a district's
school readiness adjustment equals:

(1) the district's total voluntary
prekindergarten revenue for fiscal year 2017; less

(2)
the difference between the district's school readiness aid for fiscal year 2018
and its school readiness aid for 2017.

(c) For fiscal year 2019, a district's
school readiness adjustment equals:

(1) 90 percent of the district's total
voluntary prekindergarten revenue for fiscal year 2017; less

(2) the difference between the
district's school readiness aid for fiscal year 2019 and its school readiness aid
for fiscal year 2017.

EFFECTIVE
DATE.This section is
effective for revenue for fiscal years 2018 and 2019 only."

Page 121, line 11, delete "37,283,000"
and insert "58,051,000"

Page 121, line 12, delete "38,583,000"
and insert "58,368,000"

Page 121, line 13, delete "$33,915,000"
and insert "$54,683,000"

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The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article.The
appropriations are from the general fund, or another named fund, and are
available for the fiscal years indicated for each purpose.The figures "2018" and
"2019" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2018, or June 30, 2019,
respectively."The first year"
is fiscal year 2018."The second
year" is fiscal year 2019."The
biennium" is fiscal years 2018 and 2019.

APPROPRIATIONS

Available for the Year

Ending June 30

2018

2019

Sec. 2.MINNESOTA
OFFICE OF HIGHER EDUCATION

Subdivision 1.Total
Appropriation

$252,725,000

$248,535,000

The amounts that may be spent for each
purpose are specified in the following subdivisions.

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- Tuesday, March 28, 2017 - Top of Page 2196

Subd. 2.State
Grants

193,281,000

193,281,000

If the appropriation in this subdivision
for either year is insufficient, the appropriation for the other year is
available for it.

Subd. 3.Child
Care Grants

6,708,000

6,709,000

Subd. 4.State
Work-Study

14,502,000

14,502,000

Subd. 5.Interstate
Tuition Reciprocity

11,018,000

11,018,000

If the appropriation in this subdivision
for either year is insufficient, the appropriation for the other year is
available to meet reciprocity contract obligations.

Subd. 6.Safety
Officer's Survivors

100,000

100,000

(a) This appropriation is to provide
educational benefits under Minnesota Statutes, section 299A.45, to eligible
dependent children and to the spouses of public safety officers killed in the
line of duty.

(b) If the appropriation in this
subdivision for either year is insufficient, the appropriation for the other
year is available for it.

Subd. 7.Indian
Scholarships

3,500,000

3,500,000

The commissioner must contract with or
employ at least one person with demonstrated competence in American Indian
culture and residing in or near the city of Bemidji to assist students with the
scholarships under Minnesota Statutes, section 136A.126, and with other
information about financial aid for which the students may be eligible.Bemidji State University must provide office
space at no cost to the Minnesota Office of Higher Education for purposes of
administering the American Indian scholarship program under Minnesota Statutes,
section 136A.126.This appropriation
includes funding to administer the American Indian scholarship program.

Subd. 8.Tribal
College Grants

150,000

150,000

For tribal college assistance grants under
Minnesota Statutes, section 136A.1796.

Subd. 9.Intervention for College Attendance Program Grants

671,000

671,000

(a) For the intervention for college
attendance program under Minnesota Statutes, section 136A.861.

(b) This appropriation includes funding to
administer the intervention for college attendance program grants.

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- Tuesday, March 28, 2017 - Top of Page 2197

Subd. 10.Student-Parent
Information

122,000

122,000

Subd. 11.Get
Ready!

180,000

180,000

Subd. 12.Minnesota
Education Equity Partnership

45,000

45,000

Subd. 13.Midwest
Higher Education Compact

115,000

115,000

Subd. 14.United
Family Medicine Residency Program

501,000

501,000

For a grant to United Family Medicine residency
program.This appropriation shall be
used to support up to 21 resident physicians each year in family practice at
United Family Medicine residency programs and shall prepare doctors to practice
family care medicine in underserved rural and urban areas of the state.It is intended that this program will improve
health care in underserved communities, provide affordable access to
appropriate medical care, and manage the treatment of patients in a
cost-effective manner.

Subd. 15.MnLINK
Gateway and Minitex

5,905,000

5,905,000

Subd. 16.Statewide
Longitudinal Education Data System

882,000

882,000

Subd. 17.Hennepin
County Medical Center

645,000

645,000

For transfer to Hennepin County Medical
Center for graduate family medical education programs at Hennepin County
Medical Center.

Subd. 18.MNSCU
Two-Year Public College Program

3,481,000

0

For the MNSCU two-year public college
program under Laws 2015, chapter 69, article 3, section 20.

Subd. 19.College
Possible

250,000

250,000

(a) This appropriation is for immediate
transfer to College Possible to support programs of college admission and
college graduation for low-income students through an intensive curriculum of
coaching and support at both the high school and postsecondary level.

(b) This appropriation must, to the extent
possible, be proportionately allocated between students from greater Minnesota
and students in the seven-county metropolitan area.

(c) This appropriation must be used by
College Possible only for programs supporting students who are residents of
Minnesota and attending colleges or universities within Minnesota.

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(d)
By February 1 of each year, College Possible must report to the chairs and
ranking minority members of the legislative committees and divisions with
jurisdiction over higher education and E-12 education on activities funded by
this appropriation.The report must
include, but is not limited to, information about the expansion of College
Possible in Minnesota, the number of College Possible coaches hired, the
expansion within existing partner high schools, the expansion of high school
partnerships, the number of high school and college students served, the total
hours of community service by high school and college students, and a list of
communities and organizations benefiting from student service hours.

For transfer to the commissioner of labor
and industry for identification of competency standards for dual training under
Minnesota Statutes, section 175.45.

Subd. 26.Concurrent
Enrollment Courses

340,000

340,000

(a) $225,000 in fiscal year 2018 and
$225,000 in fiscal year 2019 are for grants to develop new concurrent
enrollment courses under Minnesota Statutes, section 124D.09, subdivision 10,
that satisfy the elective standard for career and technical education.Any balance in the first year does not cancel
but is available in the second year.

(b) $115,000 in fiscal year 2018 and
$115,000 in fiscal year 2019 are for grants to postsecondary institutions currently
sponsoring a concurrent enrollment course to expand existing programs.The commissioner shall determine the
application process and the grant amounts.The commissioner must give preference to expanding programs that are at
capacity.Any balance in the first year
does not cancel but is available in the second year.

(c) By December 1 of each year, the office
shall submit a brief report to the chairs and ranking minority members of the
legislative committees with jurisdiction over higher education regarding:

(1) the courses developed by grant
recipients and the number of students who enrolled in the courses under
paragraph (a); and

(2) the programs expanded and the number
of students who enrolled in programs under paragraph (b).

(a) For the loan forgiveness program under
Minnesota Statutes, section 136A.1791.

(b) The commissioner may use no more than
three percent of this appropriation to administer the program under this
subdivision.

Subd. 30.Student
and Employer Connection Information System

405,000

405,000

For a grant to the Saint Paul Foundation
in accordance with Laws 2016, chapter 189, article 1, section 2, subdivision 5.The foundation must report by January 15 of
each year on activities under this subdivision to the chairs and ranking
minority members of the legislative committees with jurisdiction over higher
education finance.

Subd. 31.Grants
for Students with Intellectual and Developmental Disabilities

375,000

375,000

For grants for students with intellectual
and developmental disabilities under Minnesota Statutes, section 136A.1215.

Subd. 32.Agricultural
Educators Loan Forgiveness

250,000

0

For deposit in the agricultural education
loan forgiveness account.

Subd. 33.Loan
Repayment Assistance Program

50,000

50,000

For a grant to the Loan Repayment
Assistance Program of Minnesota to provide education debt relief to attorneys
with full‑time employment providing legal advice or representation to
low-income clients or support services for this work.

Subd. 34.Minnesota
Life College

1,000,000

1,000,000

For a grant to Minnesota Life College for
need-based scholarships and tuition reduction.

Subd. 35.Aviation
Degree Loan Forgiveness Program

50,000

50,000

For the aviation degree loan forgiveness
program under Minnesota Statutes, section 136A.1789.

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Subd. 36.Greater
Minnesota Loan Forgiveness Program

150,000

150,000

For the greater Minnesota loan forgiveness
program under Minnesota Statutes, section 136A.1788.

Subd. 37.Teacher Candidates of Color
Scholarship Program

200,000

200,000

For the teacher candidates of color
scholarship program under Minnesota Statutes, section 136A.1265.

Subd. 38.Agency
Administration

2,564,000

2,564,000

Subd. 39.Balances
Forward

A balance in the first year under this
section does not cancel, but is available for the second year.

Subd. 40.Transfers

The Minnesota Office of Higher Education
may transfer unencumbered balances from the appropriations in this section to
the state grant appropriation, the interstate tuition reciprocity
appropriation, the child care grant appropriation, the Indian scholarship
appropriation, the state work-study appropriation, the get ready appropriation,
and the public safety officers' survivors appropriation.Transfers from the child care or state
work-study appropriations may only be made to the extent there is a projected
surplus in the appropriation.A transfer
may be made only with prior written notice to the chairs and ranking minority
members of the senate and house of representatives committees and divisions
with jurisdiction over higher education finance.

Sec. 3.BOARD
OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

Subdivision 1.Total
Appropriation

$715,237,000

$724,995,000

The amounts that may be spent for each
purpose are specified in the following subdivisions.

Subd. 2.Central
Office and Shared Services Unit

33,074,000

33,074,000

For the Office of the Chancellor and the
Shared Services Division.

Subd. 3.Operations
and Maintenance

678,048,000

687,806,000

This appropriation includes $35,071,000 in
fiscal year 2018 and $44,929,000 in fiscal year 2019 for student tuition relief.The Board of Trustees must establish tuition
rates as follows:

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(1)
for the 2017-2018 academic year, the tuition rate at colleges must not exceed
the 2016-2017 academic year rate; and

(2) for the 2018-2019 academic year, the
tuition rate at universities must not exceed the 2017-2018 academic year rate,
and the tuition rate at colleges must be reduced by at least one percent
compared to the 2017-2018 academic year rate.

The student tuition relief may not be
offset by increases in mandatory fees, charges, or other assessments to the
student.

This appropriation includes $500,000 in
fiscal year 2018 and $500,000 in fiscal year 2019 for a program for students
with intellectual and developmental disabilities under Minnesota Statutes,
section 136F.38.

Of this amount, $150,000 in each year is
designated for the existing programs for students with intellectual and
developmental disabilities at Ridgewater College and Central Lakes College.

This appropriation includes $5,000,000 in
fiscal year 2018 and $5,000,000 in fiscal year 2019 for upgrading the
Integrated Statewide Record System.

This appropriation includes $1,250,000 in
fiscal year 2018 and $1,250,000 in fiscal year 2019 for workforce development
scholarships under Minnesota Statutes, section 136F.38.

$140,000 each year is for transfer to the
Cook County Higher Education Board to provide educational programming and
academic support services to remote regions in northeastern Minnesota.The Cook County Higher Education Board shall
continue to provide information to the Board of Trustees on the number of
students served, credit hours delivered, and services provided to students.

$175,000 in fiscal year 2018 and $175,000
in fiscal year 2019 are for the veterans-to-agriculture pilot program
established by Laws 2015, chapter 69, article 1, section 4, subdivision 3.The program shall continue to conform to the
requirements of that subdivision.The
appropriation shall be used to support, in equal amounts, up to six program
sites statewide.No more than two
percent of the total appropriation provided by this section may be used for
administrative purposes at the system level.

No later than December 15, 2018, the
program shall report to the committees of the house of representatives and the
senate with jurisdiction over issues related to agriculture, veterans affairs,
and higher education on program operations, including information on
participation rates, new job placements, and any unmet needs.

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$100,000
in fiscal year 2018 is for use by Winona State University for HealthForce
Minnesota to develop educational materials that increase awareness of career
opportunities available in the field of senior care.The educational materials developed under
this provision must be appropriate for students in K-12 education settings,
dislocated workers, and rural communities.Materials must be developed in collaboration with employers and trade
organizations representing employers in the field of senior care.

Winona State University shall submit a
report by February 1, 2019, to the chairs and ranking minority members of the
legislative committees with jurisdiction over higher education finance and
policy.The report must include
information about the materials developed, to whom materials were distributed,
and identify any collaborations with employers and trade organizations.

Five percent of the fiscal year 2019
appropriation specified in this subdivision is available according to the
schedule in clauses (1) to (5) in fiscal year 2019 when the Board of Trustees
of the Minnesota State Colleges and Universities demonstrates to the
commissioner of management and budget that the board has met the following
specified number of performance goals:

(1) 100 percent if the board meets three,
four, or five goals;

(2) 67 percent if two of the goals are met;

(3) 33 percent if one of the goals are met;
and

(4) zero percent if none of the goals are
met.

The performance goals are:

(1) increase by at least four percent in
fiscal year 2017, compared to fiscal year 2010, degrees, diplomas, and
certificates conferred and provide a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over higher education
on the separate changes in the number of degrees, diplomas, and certificates
conferred;

(2) increase by at least five percent the
fiscal year 2017-related employment rate for 2016 graduates, compared to the
2013 rate for 2012 graduates;

(3) for fiscal year 2018, reallocate
$22,000,000 of costs.The Board of
Trustees is requested to redirect those funds to invest in direct mission
activities, stem growth in tuition and student fees, and to programs that
benefit students;

(4) decrease by at least ten percent the
fiscal year 2017 headcount of students enrolled in developmental courses
compared to fiscal year 2015 headcount of students enrolled in developmental
courses; and

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(5)
increase by at least five percent the fiscal year 2017 degrees awarded to
students who took no more than 128 credits for a baccalaureate degree and 68
credits for associate in arts, associate of science, or associate in fine arts
degrees, as compared to the rate for 2013 graduates.

By August 1, 2017, the Board of Trustees
and the Minnesota Office of Higher Education must agree on specific numerical
indicators and definitions for each of the five goals that will be used to
demonstrate the Minnesota State Colleges and Universities' attainment of each
goal.On or before April 1, 2018, the
Board of Trustees must report to the legislative committees with primary
jurisdiction over higher education finance and policy the progress of the
Minnesota State Colleges and Universities toward attaining the goals.The appropriation base for the next biennium
shall include appropriations not made available under this subdivision for
failure to meet performance goals.All
of the appropriation that is not available due to failure to meet performance
goals is appropriated to the commissioner of the Office of Higher Education for
fiscal year 2019 for the purpose of the state grant program under Minnesota
Statutes, section 136A.121.

The amounts that may be spent for each
purpose are specified in the following subdivisions.

Subd. 2.Operations
and Maintenance

567,961,000

569,961,000

This appropriation includes funding for
operation and maintenance of the system.Of the amount appropriated in this subdivision:

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$6,800,000
in fiscal year 2018 and $8,800,000 in fiscal year 2019 are for health training
restoration.This appropriation must be
used to support all of the following:

(1) faculty physicians who teach at eight
residency program sites, including medical resident and student training
programs in the Department of Family Medicine;

(2) the Mobile Dental Clinic; and

(3) expansion of geriatric education and
family programs.

$1,000,000 in fiscal year 2018 and
$1,000,000 in fiscal year 2019 are for the Minnesota Discovery, Research, and
Innovation Economy program.This
appropriation is to advance research strengths to fight cancer, strengthen
communities, improve water quality, and advance data.

$300,000 in fiscal year 2018 and $300,000
in fiscal year 2019 are for a program for students with intellectual and
developmental disabilities under Minnesota Statutes, section 137.45.

$750,000 in fiscal year 2018 and $750,000
in fiscal year 2019 are for the University of Minnesota, Morris branch, to
cover the costs of tuition waivers under Minnesota Statutes, section 137.16.

Five percent of the fiscal year 2019
appropriation specified in this subdivision is available according to the schedule
in clauses (1) to (5) in fiscal year 2019 when the Board of Regents of the
University of Minnesota demonstrates to the commissioner of management and
budget that the board has met the following specified number of performance
goals:

(1) 100 percent if the board meets three,
four, or five goals;

(2) 67 percent if two of the goals are
met;

(3) 33 percent if one of the goals are
met; and

(4) zero percent if none of the goals are
met.

The performance goals are:

(1) increase by at least one percent the
four-year, five-year, or six‑year undergraduate graduation rates,
averaged over three years, for students of color systemwide at the University
of Minnesota reported in fall 2018 over fall 2016.The average rate for fall 2016 is calculated
with the graduation rates reported in fall 2014, 2015, and 2016;

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(2)
increase by at least two percent the total number of undergraduate STEM
degrees, averaged over three years, conferred systemwide by the University of
Minnesota reported in fiscal year 2018 over fiscal year 2016.The averaged number for fiscal year 2016 is
calculated with the fiscal year 2014, 2015, and 2016 numbers;

(3) increase by at least one percent the
four-year undergraduate graduation rate at the University of Minnesota reported
in fall 2018 over fall 2016.The average
rate for fall 2016 is calculated with the graduation rates reported in fall
2014, 2015, and 2016.The averaged
number for fiscal year 2016 is calculated with the fiscal year 2014, 2015, and
2016 numbers;

(4) for fiscal year 2018, reallocate
$15,000,000 of administrative costs.The
Board of Regents is requested to redirect those funds to invest in direct
mission activities, stem growth in cost of attendance, and to programs that
benefit students; and

(5) increase licensing disclosures by
three percent for fiscal year 2018 over fiscal year 2017.

By August 1, 2017, the Board of Regents
and the Office of Higher Education must agree on specific numerical indicators
and definitions for each of the five goals that will be used to demonstrate the
University of Minnesota's attainment of each goal.On or before April 1, 2018, the Board of
Regents must report to the legislative committees with primary jurisdiction
over higher education finance and policy the progress of the University of
Minnesota toward attaining the goals.The
appropriation base for the next biennium shall include appropriations not made
available under this subdivision for failure to meet performance goals.All of the appropriation that is not
available due to failure to meet performance goals is appropriated to the
commissioner of the Office of Higher Education for fiscal year 2019 for the
purpose of the state grant program under Minnesota Statutes, section 136A.121.

For the Agricultural Experiment Station
and the Minnesota Extension Service:

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(1)
the agricultural experiment stations and Minnesota Extension Service must
convene agricultural advisory groups to focus research, education, and
extension activities on producer needs and implement an outreach strategy that
more effectively and rapidly transfers research results and best practices to
producers throughout the state;

(2) this appropriation includes funding
for research and outreach on the production of renewable energy from Minnesota
biomass resources, including agronomic crops, plant and animal wastes, and
native plants or trees.The following
areas should be prioritized and carried out in consultation with Minnesota
producers, renewable energy, and bioenergy organizations:

(i) biofuel and other energy production
from perennial crops, small grains, row crops, and forestry products in
conjunction with the Natural Resources Research Institute (NRRI);

(ii) alternative bioenergy crops and
cropping systems; and

(iii) biofuel coproducts used for
livestock feed;

(3) this appropriation includes funding
for the College of Food, Agricultural, and Natural Resources Sciences to
establish and provide leadership for organic agronomic, horticultural,
livestock, and food systems research, education, and outreach and for the
purchase of state-of-the-art laboratory, planting, tilling, harvesting, and
processing equipment necessary for this project;

(4) this appropriation includes funding
for research efforts that demonstrate a renewed emphasis on the needs of the
state's agriculture community.The
following areas should be prioritized and carried out in consultation with
Minnesota farm organizations:

(i) vegetable crop research with priority
for extending the Minnesota vegetable growing season;

(5) by February 1, 2019, the Board of
Regents must submit a report to the legislative committees and divisions with
jurisdiction over agriculture and higher education finance on the status and
outcomes of research and initiatives funded in this paragraph.

(b)Health Sciences

9,204,000

9,204,000

$346,000 each year is to support up to 12
resident physicians in the St. Cloud Hospital family practice residency
program.The program must prepare
doctors to practice primary care medicine in rural areas of the state.The legislature intends this program to
improve health care in rural communities, provide affordable access to
appropriate medical care, and manage the treatment of patients in a more
cost-effective manner.The remainder of
this appropriation is for the rural physicians associates program; the
Veterinary Diagnostic Laboratory; health sciences research; dental care; the
Biomedical Engineering Center; and the collaborative partnership between the
University of Minnesota and Mayo Clinic for regenerative medicine, research,
clinical translation, and commercialization.

(c)Institute of Technology

1,140,000

1,140,000

For the geological survey and the talented
youth mathematics program.

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(d)
System Special

7,181,000

7,181,000

For general research, the Labor Education
Service, Natural Resources Research Institute, Center for Urban and Regional
Affairs, Bell Museum of Natural History, and the Humphrey exhibit.

Of this amount, $2,000,000 in fiscal year
2018 and $2,000,000 in fiscal year 2019 are for the Natural Resources Research
Institute to invest in applied research for economic development.

(e)University
of Minnesota and Mayo Foundation Partnership

7,991,000

7,991,000

This appropriation is for the following
activities:

(1) $7,491,000 in fiscal year 2018 and
$7,491,000 in fiscal year 2019 are for the direct and indirect expenses of the
collaborative research partnership between the University of Minnesota and the
Mayo Foundation for research in biotechnology and medical genomics.An annual report on the expenditure of these
funds must be submitted to the governor and the chairs of the legislative
committee responsible for higher education finance by June 30 of each fiscal
year.

(2) $500,000 in fiscal year 2018 and
$500,000 in fiscal year 2019 are to award competitive grants to conduct
research into the prevention, treatment, causes, and cures of Alzheimer's
disease and other dementias.

Subd. 5.Academic
Health Center

The appropriation for Academic Health
Center funding under Minnesota Statutes, section 297F.10, is estimated to be
$22,250,000 each year.

Sec. 5.MAYO
CLINIC

Subdivision 1.Total
Appropriation

$1,351,000

$1,351,000

The amounts that may be spent are specified
in the following subdivisions.

Subd. 2.Medical
School

665,000

665,000

The state must pay a capitation each year
for each student who is a resident of Minnesota.The appropriation may be transferred between
each year of the biennium to accommodate enrollment fluctuations.It is intended that during the biennium the
Mayo Clinic use the capitation money to increase the number of doctors
practicing in rural areas in need of doctors.

Subd. 3.Family Practice and Graduate Residency
Program

686,000

686,000

The state must pay stipend support for up
to 27 residents each year.

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Subdivision 1.General.(a) The commissioner shall perform the
duties assigned to the commissioner by sections 3.855, 179A.01 to 179A.25 and
this section.

(b) The commissioner shall be the state
labor negotiator for purposes of negotiating and administering agreements with
exclusive representatives of employees and shall perform any other duties
delegated by the commissioner subject to the limitations in paragraph (c).

(c) The Board of Trustees of the Minnesota
State Colleges and Universities may exercise the powers under this section for
employees included in the units provided in clauses (9), (10), and (11) of
section 179A.10, subdivision 2, except with respect to sections 43A.22 to
43A.31, which shall continue to be the responsibility of the commissioner.The commissioner shall have the right to
review and comment to the Minnesota State Colleges and Universities on the
board's final proposals prior to exchange of final positions with the
designated bargaining units as well as any requests for interest arbitration.The legislature encourages the Board of
Trustees, in coordination with the commissioner of management and budget and
the Board of Regents of the University of Minnesota, to endeavor in collective
bargaining negotiations to seek fiscal balance recognizing the ability of the
employer to fund the agreements or awards.When submitting a proposed collective bargaining agreement to the
Legislative Coordinating Commission and the legislature under section 3.855,
subdivision 2, the Board of Trustees must use procedures and assumptions
consistent with those used by the commissioner in calculating the costs of the
proposed contract.The Legislative
Coordinating Commission must, when considering a collective bargaining
agreement or arbitration award submitted by the Board of Trustees, evaluate
market conditions affecting the employees in the bargaining unit, equity with
other bargaining units in the executive branch, and the ability of the trustees
and the state to fund the agreement or award.

Subd. 7.Reports.(a) The University of Minnesota and the
Minnesota State Colleges and Universities systems shall include in their
biennial budget proposals to the legislature:

(1) a five-year history of systemwide
expenditures, reported by:

(i) functional areas, including instruction,
research, public service, student financial aid, and auxiliary services, and
including direct costs and indirect costs, such as institutional support,
academic support, student services, and facilities management, associated with
each functional area; and

(ii) objects of expenditure, such as
salaries, benefits, supplies, and equipment;

(2) a five-year history of the system's
total instructional expenditures per full-year equivalent student, by level of
instruction, including upper-division undergraduate, lower-division
undergraduate, graduate, professional, and other categories of instructional
programs offered by the system;

(3) a five-year history of the system's
total revenues by funding source, including tuition, state operations and
maintenance appropriations, state special appropriations, other restricted
state funds, federal appropriations, sponsored research funds, gifts, auxiliary
revenue, indirect cost recovery, and any other revenue sources;

(4) an explanation describing how state
appropriations made to the system in the previous biennium were allocated and
the methodology used to determine the allocation;

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(5)
data describing how the institution reallocated resources to advance the
priorities set forth in the budget submitted under section 135A.034 and the
statewide objectives under section 135A.011.The information must indicate whether instruction and support programs
received a reduction in or additional resources.The total amount reallocated must be clearly
explained;

(6) the tuition rates and fees established
by the governing board in each of the past ten years and comparison data for
peer institutions and national averages;

(7) data on the number and proportion of
students graduating within four, five, and six years from universities and within
three years from colleges as reported in the integrated postsecondary education
data system.These data must be provided
for each institution by race, ethnicity, and gender.Data and information must be submitted that
describe the system's plan and progress toward attaining the goals set forth in
the plan to increase the number and proportion of students that graduate within
four, five, or six years from a university or within three years from a
college;

(8) data on, and the methodology used to measure,
the number of students traditionally underrepresented in higher education
enrolled at the system's institutions.Data
and information must be submitted that describe the system's plan and progress
toward attaining the goals set forth in the plan to increase the recruitment,
retention, and timely graduation of students traditionally underrepresented in
higher education; and

(9) data on the revenue received from all
sources to support research or workforce development activities or the system's
efforts to license, sell, or otherwise market products, ideas, technology, and
related inventions created in whole or in part by the system.Data and information must be submitted that
describe the system's plan and progress toward attaining the goals set forth in
the plan to increase the revenue received to support research or workforce
development activities or revenue received from the licensing, sale, or other
marketing and technology transfer activities by the system.; and

(10) data on work completed by any
consultant who is not an employee of the system for which the system paid in
excess of $500,000.Data must include
the name of the consultant, the total cost incurred, a description of the work
completed, and a description of the reasons for using an outside consultant and
not internal staff.

(b) Data required by this subdivision shall
be submitted by the public postsecondary systems to the Minnesota Office of
Higher Education and the Department of Management and Budget and included in
the biennial budget document.Representatives
from each system, in consultation with the commissioner of management and
budget and the commissioner of the Office of Higher Education, shall develop
consistent reporting practices for this purpose.

(c) To the extent practicable, each system
shall develop the ability to respond to legislative requests for financial
analyses that are more detailed than those required by this subdivision,
including but not limited to analyses that show expenditures or revenues by
institution or program, or in multiple categories of expenditures or revenues,
and analyses that show revenue sources for particular types of expenditures.

Sec. 3.[135A.0432]
AUTOMATIC ADMISSION.

Subdivision 1.Automatic
admission.Each Minnesota
public postsecondary institution must admit an applicant to the institution as
an undergraduate student in a baccalaureate program if:

(1) the applicant graduated with a
grade point average in the top ten percent of the applicant's high school
graduating class;

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(2)
the applicant graduated from high school in one of the two years preceding the
academic year for which the applicant is applying for admission;

(3) the applicant graduated from a
public or private Minnesota high school; and

(4) the applicant was a resident of
Minnesota for at least the past two years of the applicant's period of
attendance at the Minnesota high school.

Subd. 2.Applicant qualification.To qualify for admission under
subdivision 1 of this section, the applicant must:

(1)
submit an application before the expiration of the application filing deadline
established by the institution; and

(2) provide a high school transcript or
diploma that satisfies the requirements of subdivision 1 of this section.

Subd. 3.Other
admissions.A graduating
student who does not qualify for automatic admission under subdivision 1 of
this section may apply to any Minnesota public postsecondary institution.The institution, after admitting students
under subdivision 1, may admit other applications for admission pursuant to the
institution's standard admission policies.

Subd. 4.Scholarship
dollars.The average amount
of scholarship dollars per student received by out-of-state students may not
exceed the average amount of scholarship dollars per student received by
students admitted under this section.

Subd. 5.University
of Minnesota.The Board of
Regents of the University of Minnesota is requested to adopt a policy
implementing this section.

Subd. 6.Reporting
requirement.By January 15 of
each year, both the Board of Trustees of the Minnesota State College and
Universities and the Board of Regents of the University of Minnesota must
submit a report on automatic admissions to the chairs and ranking minority
members of the committees in the house of representatives and the senate with
jurisdiction over higher education finance and policy.The report must describe, in summary form,
the students admitted under subdivision 1 of this section including, but not
limited to, information regarding:

Subdivision 1.Mandatory
fee prohibition.(a) The
governing board of a public postsecondary institution must not impose on
students any mandatory fee funding noninstructional student programs,
activities, groups, or services.

(b) This section does not prohibit
mandatory fees paid by students that are directly related to academic,
administrative, or health services.

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(c)
The Board of Regents of the University of Minnesota is requested to adopt a
policy implementing this section.

Subd. 2.Penalty.If the Board of Regents of the
University of Minnesota imposes a mandatory fee in violation of this section,
the commissioner of management and budget must deduct an amount equal to the
net revenue generated by that fee from the university's appropriation base in
the first year of the next biennium.

A public or regionally accredited private
postsecondary educational institution must provide information according to
this section to students who are parents of one or more children age 12 or
younger, and to students who notify the institution that they are pregnant.The information must include a fact sheet on
the legal rights of student parents and pregnant students and a list of
resources to support student parents and pregnant students.The list of resources may include resources
for prenatal care, child care, transportation, and housing.This information must be available in
languages that reflect the primary languages of the institution's student body.

Sec. 6.[136F.38]
PROGRAM FOR STUDENTS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES.

Subdivision 1.Program
required.The Board of
Trustees of the Minnesota State Colleges and Universities must offer an
academic program for students with intellectual and developmental disabilities,
consistent with subdivisions 2 to 4.

Subd. 2.Program
locations.The program must
be offered at no fewer than two college or university campuses.The board must choose the campuses based on:

(1) the ability to offer a robust
program using existing facilities and resources; and

(2) a goal to provide the program in
diverse geographic regions of the state.

Subd. 3.Enrollment
and admission.A campus
offering a program must establish an enrollment goal of at least 15 incoming
students per academic year.The board
must establish an application process for the program.A student who successfully completes the
program must be awarded a certificate, diploma, or other appropriate academic
credential.

Subd. 4.Curriculum
and activities.(a) The
program must provide an inclusive, full-time, two-year residential college
experience for students with intellectual and developmental disabilities.The curriculum must include:

(1) core courses that develop life
skills, financial literacy, and the ability to live independently;

(2) rigorous academic work in a
student's chosen field of study; and

(3) an internship, apprenticeship, or
other skills-based experience to prepare for meaningful employment upon
completion of the program.

(b) In addition to academic
requirements, the program must allow participating students the opportunity to
engage fully in campus life.Program
activities must include, but are not limited to:

(1) the establishment of on-campus
mentoring and peer support communities; and

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(2)
opportunities for personal growth through leadership development and other
community engagement activities.

(c) A participating campus may tailor
its program curriculum and activities to highlight academic programs, student
and community life experiences, and employment opportunities unique to that
campus or the region of the state where the campus is located.

Subd. 5.Reporting.By January 15 of each year, the board
must submit a report on the program to the chairs and ranking minority members
of the committees in the house of representatives and the senate with
jurisdiction over higher education finance and policy.The report must include, but need not be
limited to, information regarding:

(1) the number of students
participating in the program;

(2) program goals and outcomes; and

(3) the success rate of participants.

EFFECTIVE
DATE.This section is
effective for the 2018-2019 academic year and later.

Sec. 7.[136F.38]
WORKFORCE DEVELOPMENT SCHOLARSHIPS.

Subdivision 1.Program
established.The board shall
develop a scholarship program to incentivize new students to enter high-demand
occupations upon graduation.

Subd. 2.Scholarship
awards.The program shall
award scholarships at the beginning of an academic term, in the amount of
$2,500, to be distributed evenly between two terms.

Subd. 3.Program
eligibility.(a) Scholarships
shall be awarded only to a student eligible for resident tuition, as defined in section 135A.043, who is enrolled in
any of the following programs of study or certification:(1) advanced manufacturing; (2)
agriculture; (3) health care services; or (4) information technology.

(b) The student must be enrolled for at
least nine credits at a two-year college in the Minnesota State Colleges and
Universities system.

Subd. 4.Renewal;
cap.A student who has
received a scholarship may apply again but total lifetime awards are not to
exceed $5,000 per student.Students may
only be awarded a second scholarship upon completion of two academic terms.

Subd. 5.Administration.(a) The board shall establish an
application process and other guidelines for implementing this program.

(b) The board shall give preference to
students in financial need.

Subd. 6.Report
required.The board must
submit an annual report by February 1 of each year about the scholarship awards
to the chairs and ranking minority members of the senate and house of
representatives committees with jurisdiction
over higher education finance and policy.The first report is due no later than February 1, 2019.The annual report shall describe the
following:

(1) the number of students receiving a
scholarship at each two-year college during the previous fiscal year;

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(2)
the number of scholarships awarded for each program of study or certification
described in subdivision 3, paragraph (a);

(3) the number of scholarship
recipients who completed a program of study or certification described in
subdivision 3, paragraph (a);

(4) the number of scholarship
recipients who secured employment by their graduation date and those who
secured employment within three months of their graduation date;

(5) a list of occupations scholarship
recipients are entering; and

(6) the number of students who were
denied a scholarship.

Sec. 8.[137.45]
PROGRAM FOR STUDENTS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES.

The Board of Regents of the University
of Minnesota is requested to offer an academic program for students with intellectual and developmental disabilities,
consistent with the requirements of section 136F.38, subdivisions 2 to 5.

EFFECTIVE
DATE.This section is
effective for the 2018-2019 academic year and later.

Subd. 5.Practice
of psychology."Practice of
psychology" means the observation, description, evaluation,
interpretation, or modification of human behavior by the application of
psychological principles, methods, or procedures for any reason, including to
prevent, eliminate, or manage symptomatic, maladaptive, or undesired behavior
and to enhance interpersonal relationships, work, life and developmental adjustment,
personal and organizational effectiveness, behavioral health, and mental health.The practice of psychology includes, but is
not limited to, the following services, regardless of whether the provider
receives payment for the services:

(1) psychological research and teaching of
psychology subject to the exemptions in section 148.9075;

(2) assessment, including psychological
testing and other means of evaluating personal characteristics such as
intelligence, personality, abilities, interests, aptitudes, and
neuropsychological functioning;

(3) a psychological report, whether
written or oral, including testimony of a provider as an expert witness,
concerning the characteristics of an individual or entity;

(4) psychotherapy, including but not limited
to, categories such as behavioral, cognitive, emotive, systems,
psychophysiological, or insight-oriented therapies; counseling; hypnosis; and
diagnosis and treatment of:

(i) mental and emotional disorder or
disability;

(ii) alcohol and substance dependence or
abuse;

(iii) disorders of habit or conduct;

(iv) the psychological aspects of physical
illness or condition, accident, injury, or disability, including the
psychological impact of medications;

(v) life adjustment issues, including
work-related and bereavement issues; and

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(vi)
child, family, or relationship issues;

(5) psychoeducational services and
treatment; and

(6) consultation and supervision.

Sec. 10.[148.9075]
LICENSURE EXEMPTIONS.

Subdivision 1.Teaching
and research.Nothing in
sections 148.88 to 148.98 shall be construed to prevent a person employed in a
secondary, postsecondary, or graduate institution from teaching and conducting
research in psychology within an educational institution that is recognized by
a regional accrediting organization or by a federal, state, county, or local
government institution, agency, or research facility, so long as:

(1)
the institution, agency, or facility provides appropriate oversight mechanisms
to ensure public protections; and

(2)
the person is not providing direct clinical services to a client or clients as
defined in sections 148.88 to 148.98.

Subd. 2.Students.Nothing in sections 148.88 to 148.98
shall prohibit the practice of psychology under qualified supervision by
practicum psychology students, predoctoral psychology interns, or an individual
who has earned a doctoral degree in psychology and is in the process of
completing their postdoctoral supervised psychological employment.

ARTICLE
3

OFFICE
OF HIGHER EDUCATION

Section 1.[136A.055] DEVELOPMENTAL
EDUCATION REPORTING.

(a) The commissioner must report on the
department's Web site the following summary data on students who graduated from
a Minnesota high school and are attending a public postsecondary institution in
Minnesota:

(1) the number of students placed in
supplemental or developmental education;

(2) the number of students who complete
supplemental or developmental education within one academic year;

(3) the number of students that complete
gateway courses in one academic year; and

(4) time to complete a degree or
certificate at a postsecondary institution.

(b) Summary data must be aggregated by
school district, high school, and postsecondary institution.Summary data must be disaggregated by race,
ethnicity, free or reduced-price lunch eligibility, and age.

(c) The commissioner must post the
initial data on the department's Web site on or before October 1, 2017, and
must update the data at least annually thereafter.

Subd. 5a.Assigned
family responsibility."Assigned
family responsibility" means the amount of a family's contribution to a
student's cost of attendance, as determined by a federal need analysis.For dependent students, the assigned family
responsibility is 9485 percent of the parental contribution.For independent students with dependents
other than a spouse, the assigned family responsibility is 8677
percent of the student contribution.For
independent students without dependents other than a spouse, the assigned
family responsibility is 5041 percent of the student
contribution.

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Sec. 3.[136A.1215]
GRANTS FOR STUDENTS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES.

Subdivision 1.Establishment.A program is established to provide
financial assistance to students with intellectual and developmental
disabilities that attend a Minnesota postsecondary institution.

Subd. 2.Eligible
students.A postsecondary
student is eligible for a grant under this section if the student:

(2) is a student with an intellectual
disability, as defined in Code of Federal Regulations, title 34, section
668.231, and is enrolled in a comprehensive transition and postsecondary
program under that section; and

Subd. 3.Application.To receive a grant under this section,
a student must apply in the form and manner specified by the commissioner.

Subd. 4.Grant
amounts.(a) The amount of a
grant under this section equals the tuition and fees at the student's
postsecondary institution, minus:

(1) any Pell or state grants the
student receives; and

(2) any institutional aid the student
receives.

(b) If appropriations are insufficient
to provide the full amount calculated under paragraph (a) to all eligible
applicants, the commissioner must reduce the grants of all recipients
proportionally.

Subd. 5.Reporting.By February 15 of each year, the
commissioner of higher education must submit a report on the details of the
program under this section to the legislative committees with jurisdiction over
higher education finance and policy.The
report must include the following information, broken out by postsecondary
institution:

Subd. 2.Eligible
students.(a) An applicant is
eligible for a child care grant if the applicant:

(1) is a resident of the state of Minnesota
or the applicant's spouse is a resident of the state of Minnesota;

(2) has a child 12 years of age or younger,
or 14 years of age or younger who is disabled as defined in section 125A.02,
and who is receiving or will receive care on a regular basis from a licensed or
legal, nonlicensed caregiver;

(3) is income eligible as determined by the
office's policies and rules, but is not a recipient of assistance from the
Minnesota family investment program;

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(4)
either has not earned a baccalaureate degree and has been enrolled full time
less than eightten semesters or the equivalent, or has earned a
baccalaureate degree and has been enrolled full time less than eightten
semesters or the equivalent in a graduate or professional degree program;

(5) is pursuing a nonsectarian program or
course of study that applies to an undergraduate, graduate, or professional
degree, diploma, or certificate;

(6) is enrolled in at least six credits in
an undergraduate program or one credit in a graduate or professional program in
an eligible institution; and

(7) is in good academic standing and making
satisfactory academic progress.

(b) A student who withdraws from enrollment
for active military service after December 31, 2002, because the student was
ordered to active military service as defined in section 190.05, subdivision 5b
or 5c, or for a major illness, while under the care of a medical professional,
that substantially limits the student's ability to complete the term is
entitled to an additional semester or the equivalent of grant eligibility and
will be considered to be in continuing enrollment status upon return.

Subd. 4.Amount
and length of grants.(a) The amount
of a child care grant must be based on:

(1) the income of the applicant and the
applicant's spouse;

(2) the number in the applicant's family, as
defined by the office; and

(3) the number of eligible children in the
applicant's family.

(b) The maximum award to the applicant shall
be $2,800$3,000 for each eligible child per academic year,
except that the campus financial aid officer may apply to the office for
approval to increase grants by up to ten percent to compensate for higher
market charges for infant care in a community.The office shall develop policies to determine community market costs
and review institutional requests for compensatory grant increases to ensure
need and equal treatment.The office
shall prepare a chart to show the amount of a grant that will be awarded per
child based on the factors in this subdivision.The chart shall include a range of income and family size.

(c) Applicants with family incomes at or
below a percentage of the federal poverty level, as determined by the
commissioner, will qualify for the maximum award.The commissioner shall attempt to set the
percentage at a level estimated to fully expend the available appropriation for
child care grants.Applicants with
family incomes exceeding that threshold will receive the maximum award minus
ten percent of their income exceeding that threshold.If the result is less than zero, the grant is
zero.

(d) The academic year award amount must be
disbursed by academic term using the following formula:

(1) the academic year amount described in
paragraph (b);

(2) divided by the number of terms in the
academic year;

(3) divided by 15 for undergraduate
students and six for graduate and professional students; and

(4) multiplied by the number of credits
for which the student is enrolled that academic term, up to 15 credits for
undergraduate students and six for graduate and professional students.

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(e)
Payments shall be made each academic term to the student or to the child care
provider, as determined by the institution.Institutions may make payments more than once within the academic term.

Sec. 6.[136A.1265]
TEACHER CANDIDATES OF COLOR SCHOLARSHIPS.

Subdivision 1.Definitions.(a) For the purposes of this section,
the following terms have the meanings given.

(b) "Full-time study" means:

(1) for an undergraduate student,
enrollment in at least 15 credits or the equivalent; and

(2) for a graduate student, enrollment
in a number of credits that the student's institution deems to be full time.

(c)
"Part-time study" means enrollment in fewer credits than are required
to qualify as full time under paragraph (b).

(d) "Underrepresented racial or
ethnic group" means a racial or ethnic group for which the commissioner of
education has determined that the percentage of Minnesota teachers of the
group, as measured under section 127A.05, subdivision 6, is lower than the
percentage of Minnesota students of the group as measured under section
120B.35, subdivision 3.

Subd. 2.Establishment.A scholarship program for teacher
candidates of color is established to provide scholarships to qualified
candidates with financial needs.

Subd. 3.Eligibility.A person may apply for a scholarship
if the person:

(1) has been admitted to a teacher
preparation program approved by the Board of Teaching at an eligible
institution located in Minnesota;

(2) self-identifies to the teacher
preparation program as a member of an underrepresented racial or ethnic group;

(3) is making satisfactory academic
progress;

(4) is a resident student; and

(5) has a family adjusted gross income of
$125,000 or less.

Subd. 4.Amount.(a) The commissioner must establish
scholarship amounts based upon the financial need of eligible students.The commissioner must set scholarship amounts
at a level estimated to fully expend appropriations available for the program.Established amounts are not rulemaking for
purposes of chapter 14 or section 14.386.

(b) A scholarship under this section
must not exceed:

(1) $10,000 per year; or

(2) a student's cost of attendance
minus the student's expected family contribution, as determined by the federal
need analysis.

(c) The minimum scholarship under this
section is $1,000 per year.

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(d)
The amounts determined under paragraphs (a), (b), and (c) are for full-time
study.The amounts must be reduced and
prorated per credit for part-time study.

(e) The maximum total amount of
scholarships from this scholarship per candidate is $25,000.

Subd. 5.Application.To apply for a scholarship, an
eligible institution must submit an application to the commissioner on behalf of
an eligible student.The application
must be made in a form and manner specified by the commissioner, and must
include a candidate's name, self-identified racial and ethnic identity, gender,
licensure area sought, and full-time or part-time status.

Subdivision 1.Grant.A program is established under the
Office of Higher Education to provide a grant to a Minnesota-based nonprofit
qualified debt counseling organization to provide individual student loan debt
repayment counseling to borrowers who are Minnesota residents concerning loans
obtained to attend a postsecondary institution.The number of individuals receiving counseling may be limited to those
capable of being served with available appropriations for that purpose.A goal of the counseling program is to
provide two counseling sessions to at least 75 percent of borrowers receiving
counseling.

The purpose of the counseling is to
assist borrowers to:

(1) understand their loan and repayment
options;

(2) manage loan repayment; and

(3) develop a workable budget based on
the borrower's full financial situation regarding income, expenses, and other
debt.

(3) is based in Minnesota and has
offices at multiple rural and metropolitan area locations in the state to
provide in-person counseling.

Subd. 3.Grant
application and award.(a)
Applications for a grant shall be on a form created by the commissioner and on
a schedule set by the commissioner.Among
other provisions, the application must include a description of:

(1) the characteristics of borrowers to
be served;

(2) the services to be provided and a
timeline for implementation of the services;

(3) how the services provided will help
borrowers manage loan repayment;

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(4)
specific program outcome goals and performance measures for each goal; and

(5) how the services will be evaluated
to determine whether the program goals were met.

(b) The commissioner shall select one
grant recipient for a two-year award every two years.A grant may be renewed biennially.

Subd. 4.Program
evaluation.(a) The grant recipient
must submit a report to the commissioner by January 15 of the second year of
the grant award.The report must
evaluate and measure the extent to which program outcome goals have been met.

(b) The grant recipient must collect,
analyze, and report on participation and outcome data that enable the office to
verify the outcomes.

(c) The evaluation must include
information on the number of borrowers served with on-time student loan
payments, the numbers who brought their loans into good standing, the number of
student loan defaults, the number who developed a monthly budget plan, and
other information required by the commissioner.Recipients of the counseling must be surveyed on their opinions about
the usefulness of the counseling and the survey results must be included in the
report.

Subd. 5.Report
to legislature.By February 1
of the second year of each grant award, the commissioner must submit a report
to the committees in the legislature with jurisdiction over higher education
finance regarding grant program outcomes.

Sec. 8.[136A.1788]
GREATER MINNESOTA LOAN FORGIVENESS PROGRAM.

Subdivision 1.Definitions.(a) For purposes of this section, the
following terms have the meanings given.

(b) "Greater Minnesota" means
the geographic areas in Minnesota located outside of the metropolitan area as
defined in section 473.121, subdivision 2.

(d) "Qualifying educational
institution" means an institution of higher education that had in effect
at the time of an applicant's attendance a program participation agreement
under United States Code, title 20, chapter 28, subchapter IV, part F, section
1094.

(e) "Qualifying position"
means a position as an employee, as defined in section 181.723, subdivision 3,
for which the primary work site is located in greater Minnesota.

(f) "Qualifying student loan"
means a government, commercial, or foundation loan for actual costs paid for
tuition and reasonable educational and living expenses related to attending a
qualifying educational institution.

(g) "Working full time" means
working an average of at least 30 hours per week.

Subd. 2.Program
established.(a) The
commissioner must establish a greater Minnesota loan forgiveness program for
individuals who work in a qualifying position.

(b) Appropriations to the program do
not cancel and are available until expended.

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Subd. 3.Eligibility.(a) To be eligible to receive loan
forgiveness under this section, an applicant must:

(1) be a Minnesota resident;

(2) have a qualifying student loan
balance;

(3) have earned a degree, diploma, or
certificate from a qualifying educational institution;

(4) have worked full time for a 12-month
period in one or more qualifying positions; and

(5) have a debt-to-income ratio of at
least 0.10.

(b) An eligible applicant may receive
one loan forgiveness award of the amount specified in this section for each
12-month period that the applicant works for a qualifying employer.An individual may receive a loan forgiveness
award under this section no more than five times.

Subd. 4.Application.(a) To be considered for a loan
forgiveness award, an applicant must apply in a form and manner specified by
the commissioner.

(b) An applicant must reapply to the
commissioner each year that the applicant wishes to receive an award.The application must include proof that the
participant has worked full time for a 12-month period for one or more
qualifying employers.

Subd. 5.Prioritization
of applicants.If
appropriations for the program under this section are insufficient to provide a
loan forgiveness award to each eligible applicant, the commissioner must
preferentially award loan forgiveness to applicants:

(1) with a qualifying student loan
balance of at least $5,000; and

(2) working in occupations that do not
qualify for other state or federal loan forgiveness programs that are limited
to particular occupations.

Subd. 6.Amount
of forgiveness.(a) The
commissioner must provide a loan forgiveness award to an eligible applicant on
a funds available basis, as provided in this section.

(b) For each year of qualifying
full-time work a participant completes, the participant is eligible for a loan
forgiveness award equal to the lesser of:

(1) $3,000;

(2) ten percent of the remaining balance
of a participant's qualifying student loans the first year a participant
received an award under this section; or

(3) the remaining balance of a
participant's qualifying student loans.

Subd. 7.Disbursement.The commissioner must disburse an
award under this section directly to the participant's student loan servicer or
servicers.

Subd. 8.Fund
established.A greater
Minnesota loan forgiveness fund is created for depositing money appropriated to
or received by the commissioner for the program.Money deposited in the fund shall not revert
to any state fund at the end of any fiscal year but remains in the fund and is
continuously available for loan forgiveness under this section.

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Subd. 9.Reporting.By February 1 of each year, the
commissioner must annually report to the legislative committees with
jurisdiction over higher education and economic development on the results of
the program in the previous year.At a
minimum, the report must include data on:

(1) the number of applicants;

(2) the highest degree obtained by
applicants;

(3) the industries in which applicants
worked;

(4) the counties in which applicants
worked and resided;

(5) the average student loan balance of
applicants;

(6) the mean and median loan
forgiveness award;

(7) the total amount of debt forgiven
under the program;

(8) the mean and median income of
applicants;

(9) the mean debt-to-income ratio of
applicants; and

(10) the number of greater Minnesota
loan forgiveness awards that award recipients received previously.

Sec. 9.[136A.1789]
AVIATION DEGREE LOAN FORGIVENESS PROGRAM.

Subdivision 1.Definitions.(a) For purposes of this section, the
terms in this subdivision have the meanings given them.

(b) "Qualified aircraft
technician" means an individual who (1) has earned an associate's or
bachelor's degree from a postsecondary institution located in Minnesota, and
(2) has obtained an aviation mechanic's certificate from the Federal Aviation
Administration.

(c) "Qualified education
loan" means a government, commercial, or foundation loan used by an
individual for actual costs paid for tuition to a postsecondary institution
located in Minnesota for a professional flight training degree.

(d) "Qualified pilot" means
an individual who (1) has earned an associate's or bachelor's degree in
professional flight training from a postsecondary institution located in
Minnesota, and (2) is in the process of obtaining or has obtained an airline
transport pilot certificate.

Subd. 2.Creation
of account.(a) An aviation
degree loan forgiveness program account is established to provide qualified
pilots and qualified aircraft technicians with financial assistance in repaying
qualified education loans.The
commissioner must use money from the account to establish and administer the
aviation degree loan forgiveness program.

(b) Appropriations made to the aviation
degree loan forgiveness program account do not cancel and are available until
expended.

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Subd. 3.Eligibility.(a) To be eligible to participate in
the loan forgiveness program under this section, an individual must:

(1) be a qualified pilot or qualified
aircraft technician;

(2) have qualified education loans;

(3) reside in Minnesota; and

(4) submit an application to the
commissioner in the form and manner prescribed by the commissioner.

(b) An applicant selected to participate
must sign a contract to agree to serve a minimum one-year full-time service
obligation according to subdivision 4.To
complete the service obligation, the applicant must work full time in Minnesota
as a qualified pilot or qualified aircraft technician.A participant must complete one year of
service under this paragraph for each year the participant receives an award
under this section.

Subd. 4.Service
obligation.(a) Before
receiving loan repayment disbursements and as requested, a participant must
verify to the commissioner that the participant is employed in a position that
fulfills the service obligation as required under subdivision 3, paragraph (b).

(b) If a participant does not fulfill
the required service obligation, the commissioner must collect from the
participant the total amount paid to the participant under the loan forgiveness
program plus interest at a rate established according to section 270C.40.The commissioner must deposit the money
collected in the aviation degree loan forgiveness account.The commissioner must allow waivers of all or
part of the money owed the commissioner as a result of a nonfulfillment penalty
if emergency circumstances prevented fulfillment of the minimum service
commitment.

Subd. 5.Loan
forgiveness.(a) The
commissioner may select eligible applicants each year for participation in the
aviation degree loan forgiveness program, within the limits of available
funding.Applicants are responsible for
securing their own qualified education loans.

(b) For each year that the participant
meets the eligibility requirements under subdivision 3, the commissioner must
make annual disbursements directly to:

(1) a selected qualified pilot of $5,000
or the balance of the participant's qualified education loans, whichever is
less; and

(2) a selected qualified aircraft
technician of $3,000 or the balance of the participant's qualified education
loans, whichever is less.

(c) An individual may receive
disbursements under this section for a maximum of five years.

(d) The participant must provide the
commissioner with verification that the full amount of the loan repayment
disbursement received by the participant has been applied toward the designated
qualified education loan.After each
disbursement, verification must be received by the commissioner and approved
before the next repayment disbursement is made.

(e) If the participant receives a
disbursement in the participant's fifth year of eligibility, the participant
must provide the commissioner with verification that the full amount of the
participant's final loan repayment disbursement was applied toward the
designated qualified education loan.If
a participant does not provide the verification as required under this
paragraph within six months of receipt of the final disbursement, the
commissioner must collect from the participant the amount of the final
disbursement.The commissioner must
deposit the money collected in the aviation degree loan forgiveness program
account.

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Subd. 6.Rules.The commissioner may adopt rules to
implement this section.

Sec. 10.[136A.1794]
AGRICULTURAL EDUCATION LOAN FORGIVENESS PROGRAM.

Subdivision 1.Definitions.(a) For purposes of this section, the
terms in this subdivision have the meanings given.

(b) "Qualified education
loan" means a government, commercial, or foundation loan for actual costs
paid for tuition, reasonable education expenses, and reasonable living expenses
related to the graduate or undergraduate education of a qualified teacher.

(1) is employed in a nonadministrative
position teaching agricultural education in any grade from grades 5 through 12
at a Minnesota school during the current year; and

(2) has completed an undergraduate or
graduate program in agricultural education at a college or university approved
by the state of Minnesota to prepare persons for teacher licensure.

(d) "School" means the
following:

(1) a school or program operated by a
school district or a group of school districts;

(2) a tribal contract school eligible
to receive aid according to section 124D.83;

(3) a charter school; or

(4) a private school.

Subd. 2.Account;
appropriation.An
agricultural education loan forgiveness account is established in the special
revenue fund to provide qualified teachers with financial assistance to repay
qualified education loans.Money in the
account, including interest, is appropriated to the commissioner for purposes
of this section.

Subd. 3.Eligibility.(a) To be eligible to participate in
the loan forgiveness program under this section, an individual must:

(1) be a qualified teacher;

(2) have qualified education loans; and

(3) submit an application to the
commissioner in the form and manner prescribed by the commissioner.

(b) An applicant selected to participate
must sign a contract to agree to serve a minimum one-year full-time service
obligation according to subdivision 4.To
complete the service obligation, the applicant must work full time in Minnesota
as a qualified teacher.A participant
must complete one year of service under this paragraph for each year the
participant receives an award under this section.

Subd. 4.Service
obligation.(a) Before
receiving loan repayment disbursements and as requested, a participant must
verify to the commissioner that the participant is employed in a position that
fulfills the service obligation as required under subdivision 3, paragraph (b).

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(b)
If a participant does not fulfill the required service obligation, the
commissioner must collect from the participant the total amount paid to the
participant under the loan forgiveness program plus interest at a rate
established according to section 270C.40.The commissioner must deposit the money collected in the agricultural
education loan forgiveness account.The
commissioner must allow waivers of all or part of the money owed the
commissioner as a result of a nonfulfillment penalty if emergency circumstances
prevented fulfillment of the minimum service commitment.

Subd. 5.Loan
forgiveness.(a) The commissioner
may select eligible applicants each year for participation in the agricultural
education loan forgiveness program, within the limits of available funding.Applicants are responsible for securing their
own qualified education loans.

(b) The commissioner must make annual
disbursements directly to the eligible participant of $3,000 or the balance of
the participant's qualified education loans, whichever is less, for each year
that the participant meets the eligibility requirements under subdivision 3, up
to a maximum of five years.

(c) The participant must provide the
commissioner with verification that the full amount of the loan repayment
disbursement received by the participant has been applied toward the designated
qualified education loan.After each
disbursement, verification must be received by the commissioner and approved
before the next repayment disbursement is made.

Subd. 5.Regionally
accredited nonprofit institutions in Minnesota.(a) A regionally accredited nonprofit
postsecondary institution with its primary physical location in Minnesota is
exempt from the provisions of sections 136A.61 to 136A.71 when it creates new
or modifies existing:

The office shall not providemay
revoke, or deny an application for, registration or degree or name approval
to a school if there has been a criminal, civil, or administrative adjudication
of fraud or misrepresentation in Minnesota or in another state or jurisdiction
against the school or its owner, officers, agents, or sponsoring organization.If the adjudication was related to a
particular academic program, the office may revoke degree approval, or deny an
application for degree approval, for that program only.

The adjudication of fraud or
misrepresentation is sufficient cause for the office to determine that a
school:

(1) does not qualify for exemption under
section 136A.657; or

(2) is
not approved to grant degrees or to use the term "academy,"
"college," "institute," or "university" in its
name.

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Sec. 14.STATE
GRANT REPORT.

(a) The commissioner of higher
education must report to the legislature the estimated amount of funding
necessary for the state grant program to fully meet the financial aid needs of
lower- and middle-income Minnesota college students based on the program's
shared responsibility design.The report
must include an estimate of:

(1) the amount a student should be
expected to contribute toward the cost of education through borrowing and
employment;

(2) the amount a student's family
should be expected to contribute toward the cost of education, based on the
family's financial circumstances;

(3) the actual living and miscellaneous
expenses of a student, including room, board, transportation, and the cost of
textbooks; and

(4) equitable tuition maximums for
public and nonprofit institutions that reflect both tuition charged and the
subsidy provided to all students at public institutions received through direct
appropriations.

(b)
The commissioner must submit the report to the higher education committees of
the legislature by October 15, 2017.

(a) A postsecondary institution is eligible
for state student aid under chapter 136A and sections 197.791 and 299A.45, if
the institution is located in this state and:

(1) is operated by this state or the Board
of Regents of the University of Minnesota; or

(2) is operated privately and, as determined
by the office, meets the requirements of paragraph (b).

(b) A private institution must:

(1) maintain academic standards
substantially equivalent to those of comparable institutions operated in this
state;

(2) be licensed or registered as a postsecondary
institution by the office; and

(3)(i) by July 1, 2010, participate in the
federal Pell Grant program under Title IV of the Higher Education Act of 1965,
Public Law 89-329, as amended; or

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(ii)
if an institution was participating in state student aid programs as of June
30, 2010, and the institution did not participate in the federal Pell Grant
program by June 30, 2010, the institution must require every student who
enrolls to sign a disclosure form, provided by the office, stating that the institution
is not participating in the federal Pell Grant program.

(c) An institution that offers only
graduate-level degrees or graduate-level nondegree programs, or that offers
only degrees or programs that do not meet the required minimum program length
to participate in the federal Pell Grant program, is an eligible
institution if the institution is licensed or registered as a postsecondary
institution by the office.

(d) An eligible institution under paragraph
(b), clause (3), item (ii), that changes ownership as defined in section
136A.63, subdivision 2, must participate in the federal Pell Grant program
within four calendar years of the first ownership change to continue
eligibility.

(e) An institution that loses its eligibility
for the federal Pell Grant program is not an eligible institution.

(f) An institution must maintain
adequate administrative and financial standards and compliance with all state
statutes, rules, and administrative policies related to state financial aid
programs.

Subd. 4.Loan
forgiveness.(a) The commissioner
may select a maximum of five applicants each year for participation in the loan
forgiveness program, within the limits of available funding.Applicants are responsible for securing their
own qualified educational loans.

(b) The commissioner must select
participants based on their suitability for practice serving the designated
rural area, as indicated by experience or training.The commissioner must give preference to
applicants closest to completing their training.

(c) The commissioner must make annual
disbursements directly to the participant of $15,000 or the balance of the
participant's qualifying educational loans, whichever is less, for each year
that a participant meets the service obligation required under subdivision 3,
paragraph (b), up to a maximum of five years.

(d) Before receiving loan repayment
disbursements and as requested, the participant must complete and return to the
commissioner an affidavita confirmation of practice form
provided by the commissioner verifying that the participant is practicing as
required under subdivision 2, paragraph (a).The participant must provide the commissioner with verification that the
full amount of loan repayment disbursement received by the participant has been
applied toward the designated loans.After
each disbursement, verification must be received by the commissioner and
approved before the next loan repayment disbursement is made.

(e) Participants who move their practice
remain eligible for loan repayment as long as they practice as required under
subdivision 2, paragraph (a).

(a) In the eventNew schools that
have been granted conditional approval for degrees or names to allow them the
opportunity to apply for and receive accreditation under section 136A.65,
subdivision 7, or any registered institution that is notified by the
United States Department of Education that it has fallen below minimum financial
standards

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and
that its continued participation in Title IV will be conditioned upon its
satisfying either the Zone Alternative, Code of Federal Regulations, title 34,
section 668.175, paragraph (f), or a Letter of Credit Alternative, Code of
Federal Regulations, title 34, section 668.175, paragraph (c), the
institution shall provide a surety bond conditioned upon the faithful
performance of all contracts and agreements with students in a sum equal to
the "letter of credit" required by the United States Department of
Education in the Letter of Credit Alternative, but in no event shall such bond
be less than $10,000 nor more than $250,000.

(b) In lieu of a bond, the applicant may
deposit with the commissioner of management and budget:

(1) a sum equal to the amount of the
required surety bond in cash; or

(2) securities, as may be legally purchased
by savings banks or for trust funds, in an aggregate market value equal to the
amount of the required surety bond.; or

(3) an irrevocable letter of credit
issued by a financial institution to the amount of the required surety bond.

(c) The surety of any bond may cancel it
upon giving 60 days' notice in writing to the office and shall be relieved of
liability for any breach of condition occurring after the effective date of
cancellation.

(d) In the event of a school closure,
the additional security must first be used to destroy any private educational
data under section 13.32 left at a physical campus in Minnesota after all other
governmental agencies have recovered or retrieved records under their record
retention policies.Any remaining funds
must then be used to reimburse tuition and fee costs to students that were
enrolled at the time of the closure or had withdrawn in the previous 120 calendar
days but did not graduate.Priority for
refunds will be given to students in the following order:

(1) cash payments made by the student
or on behalf of a student;

(2) private student loans; and

(3) Veteran Administration education
benefits that are not restored by the Veteran Administration.If there are additional security funds
remaining, the additional security funds may be used to cover any
administrative costs incurred by the office related to the closure of the
school.

Subd. 1a.Accreditation;
requirement.(a) A school
must not be registered or authorized to offer any degree at any level
unless the school is accreditedhas institutional accreditation
by an agency recognized by the United States Department of Education for
purposes of eligibility to participate in Title IV federal financial aid
programs.Any registered school
undergoing institutional accreditation shall inform the office of site visits
by the accrediting agency and provide office staff the opportunity to attend
the visits, includingexcluding any exit interviews.The institution must provide the office with
a copy of the final report upon receiptrequest of the office.

(b) A school must not be authorized to
offer any degree unless the program has programmatic accreditation or the
school has institutional accreditation by an agency recognized by the United
States Department of Education for purposes of eligibility to participate in Title
IV federal financial aid programs.Any
program offered by a registered school that does not have institutional
accreditation and is undergoing programmatic accreditation shall inform the
office of site visits by the accrediting agency and provide office staff the
opportunity to attend the visits, excluding any exit interviews.The school must provide the office with a
copy of the final report by the accreditor upon request of the office.

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Subd. 4.Criteria
for approval.(a) A school applying
to be registered and to have its degree or degrees and name approved must
substantially meet the following criteria:

(1) the school has an organizational
framework with administrative and teaching personnel to provide the educational
programs offered;

(2) the school has financial resources
sufficient to meet the school's financial obligations, including refunding
tuition and other charges consistent with its stated policy if the institution
is dissolved, or if claims for refunds are made, to provide service to the
students as promised, and to provide educational programs leading to degrees as
offered;

(3) the school operates in conformity with
generally accepted budgeting and accounting principles according to
the type of school;

(4) the school provides an educational
program leading to the degree it offers;

(5) the school provides appropriate and
accessible library, laboratory, and other physical facilities to support the
educational program offered;

(6) the school has a policy on freedom or
limitation of expression and inquiry for faculty and students which is
published or available on request;

(7) the school uses only publications and
advertisements which are truthful and do not give any false, fraudulent,
deceptive, inaccurate, or misleading impressions about the school, its
personnel, programs, services, or occupational opportunities for its graduates
for promotion and student recruitment;

(8) the school's compensated recruiting
agents who are operating in Minnesota identify themselves as agents of the
school when talking to or corresponding with students and prospective students;

(9) the school provides information to
students and prospective students concerning:

(ii) clear and accurate policies relating to
granting credit for prior education, training, and experience and for courses
offered by the school;

(iii) current schedules of fees, charges for
tuition, required supplies, student activities, housing, and all other standard
charges;

(iv) policies regarding refunds and
adjustments for withdrawal or modification of enrollment status; and

(v) procedures and standards used for
selection of recipients and the terms of payment and repayment for any
financial aid program; and

(10) the school must not withhold a
student's official transcript because the student is in arrears or in default
on any loan issued by the school to the student if the loan qualifies as an
institutional loan under United States Code, title 11, section 523(a)(8)(b).

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(b)
An application for degree approval must also include:

(i) title of degree and formal recognition
awarded;

(ii) location where such degree will be
offered;

(iii) proposed implementation date of the
degree;

(iv) admissions requirements for the degree;

(v) length of the degree;

(vi) projected enrollment for a period of
five years;

(vii) the curriculum required for the
degree, including course syllabi or outlines;

(viii) statement of academic and
administrative mechanisms planned for monitoring the quality of the proposed
degree;

(ix) statement of satisfaction of
professional licensure criteria, if applicable;

(x) documentation of the availability of
clinical, internship, externship, or practicum sites, if applicable; and

(xi) statement of how the degree fulfills
the institution's mission and goals, complements existing degrees, and
contributes to the school's viability.

Subd. 7.Conditional
approval.(a) The office may
grant a school a one-year conditional approval for a degree or use of a
term in its name for a period of less than one year if doing so would be
in the best interests of currently enrolled students or prospective students.Conditional approval of a degree or use of
a term under this paragraph must not exceed a period of three years.

(b) The office may grant new schools may
be grantedand programs a one-year conditional approval for degrees
or names annually for a period not to exceed five yearsuse of a term
in its name to allow themthe school the opportunity to apply
for and receive accreditation as required in subdivision 1a.Conditional approval of a school or
program under this paragraph must not exceed a period of five years.A new school or program granted
conditional approval may be allowed to continue as a registered institution
in order to complete an accreditation process upon terms and conditions the
office determines.

(c) The office may grant a registered
school a one-year conditional approval for degrees or use of a term in its name
to allow the school the opportunity to apply for and receive accreditation as
required in subdivision 1a if the school's accrediting agency is no longer
recognized by the United States Department of Education for purposes of
eligibility to participate in Title IV federal financial aid programs.The office must not grant conditional
approvals under this paragraph to a school for a period of more than five
years.

(d) The office may grant a registered
school a one-year conditional approval for degrees or use of a term in its name
to allow the school to change to a different accrediting agency recognized by
the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs.The office must not grant conditional
approvals under this paragraph to a school for a period of more than five
years.

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Sec. 9.Minnesota Statutes 2016, section 136A.653, is
amended to read:

136A.653
EXEMPTIONS.

Subdivision 1.Application.A school that seeks an exemption from
the provisions of sections 136A.61 to 136A.71 must apply to the office to
establish that the school meets the requirements of an exemption.An exemption expires two years from the date
of approval or until a school adds a new program or makes a modification equal
to or greater than 25 percent to an existing educational program.If a school is reapplying for an exemption,
the application must be submitted to the office 90 days before the current
exemption expires.

Subdivision 1.Subd. 1a.ExemptionPrivate career schools.A
school that is subject to licensing by the office under sections 136A.82 to
136A.834 is exempt from the provisions of sections 136A.61 to 136A.71.The determination of the office as to whether
a particular school is subject to regulation under sections 136A.82 to 136A.834
is final for the purposes of this exemption.

Subd. 2.Educational
program; nonprofit organizations.Educational
programs which are sponsored by a bona fide and nonprofit trade, labor,
business, professional or fraternal organization, which programs are conducted
solely for that organization's membership or for the members of the particular
industries or professions served by that organization, and which are not
available to the public on a fee basis, are exempted from the provisions of
sections 136A.61 to 136A.71.

Subd. 3.Educational
program; business firms.Educational
programs which are sponsored by a business firm for the training of its
employees or the employees of other business firms with which it has contracted
to provide educational services at no cost to the employees are exempted from
the provisions of sections 136A.61 to 136A.71.

Subd. 3a.Tuition-free
educational courses.A school,
including a school using an online platform service, offering training,
courses, or programs is exempt from sections 136A.61 to 136A.71, to the extent it
offers tuition‑free courses to students in Minnesota.A course will be considered tuition-free if
the school charges no tuition and the required fees and other required charges
paid by the student for the coursetuition, fees, and any other charges
for a student to participate do not exceed two percent of the most recent
average undergraduate tuition and required fees as of January 1 of the current
year charged for full-time students at all degree-granting institutions as
published annually by the United States Department of Education as of January 1
of each year.To qualify for an
exemption, a school or online platform service must prominently display a
notice comparable to the following:"IMPORTANT:Each educational institution makes its own
decision regarding whether to accept completed coursework for credit.Check with your university or college."

Subd. 4.Voluntary
submission.Any school or program
exempted from the provisions of sections 136A.61 to 136A.71 by the provisions
of this section may voluntarily submit to the provisions of those sections.

Subd. 5.Application.A school that seeks an exemption from
the provisions of sections 136A.61 to 136A.71 must apply to the office to
establish that the school meets the requirements of an exemption.An exemption expires two years from the date
of approval or when a school adds a new program or makes a modification equal
to or greater than 25 percent to an existing educational program.If a school is reapplying for an exemption,
the application must be submitted to the office 90 days before the current
exemption expires.

Sec. 11.Minnesota Statutes 2016, section 136A.67, is
amended to read:

136A.67
REGISTRATION REPRESENTATIONS.

No school and none of its officials or
employees shall advertise or represent in any manner that such school is
approved or accredited by the office or the state of Minnesota, except a school
which is duly registered with the office, or any of its officials or employees,
may represent in advertising and shall disclose in catalogues,

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applications,
and enrollment materials that the school is registered with the office by
prominently displaying the following statement:"(Name of school) is registered with the officeMinnesota
Office of Higher Education pursuant to sections 136A.61 to 136A.71.Registration is not an endorsement of the institution.Credits earned at the institution may not
transfer to all other institutions." In addition, all registered schools shall
publish in the school catalog or student handbook the name, street address,
telephone number, and Web site address of the office.

Sec. 12.[136A.672]
STUDENT COMPLAINTS.

Subdivision 1.Authority.The office has the authority to review
and take appropriate action on student complaints from schools covered under
the provisions of sections 136A.61 to 136A.71.

Subd. 2.Complaint.A complaint must be in writing, be
signed by a student, and state how the school's policies and procedures or
sections 136A.61 to 136A.71 were violated.Student complaints shall be limited to complaints that occurred within
six years from the date the concern should have been discovered with reasonable
effort and after the student has utilized the school's internal complaint
process.Students do not have to utilize
a school's internal complaint process before the office has authority when the
student is alleging fraud or misrepresentation.The office shall not investigate grade disputes, student conduct
proceedings, disability accommodation requests, and discrimination claims,
including Title IX complaints.

Subd. 3.Investigation.The office shall initiate an
investigation upon receipt of a complaint within the authority of subdivision 2.A school involved in an investigation shall
be informed of the alleged violations and the processes of the investigation.A school involved in an investigation shall
respond to the alleged violations and provide requested documentation to the
office.Upon completing an
investigation, the office shall inform the school and the student of the
investigation outcome.

Subd. 4.Penalties.If violations are found, the office
may require remedial action by the school or assign a penalty under section 136A.705.Remedial action may include student
notification of violations, adjustments to the school's policies and
procedures, and tuition or fee refunds to impacted students.

Sec. 13.Minnesota Statutes 2016, section 136A.68, is
amended to read:

136A.68
RECORDS.

A registered school shall maintain a
permanent record for each student for 50 years from the last date of the
student's attendance.A registered
school offering distance instruction to a student located in Minnesota shall
maintain a permanent record for each Minnesota student for 50 years from the
last date of the student's attendance.Records
include a student's academic transcript, documents, and files containing
student data about academic credits earned, courses completed, grades awarded,
degrees awarded, and periods of attendance.To preserve permanent records, a school shall submit a plan that meets
the following requirements:

(1) at least one copy of the records must be
held in a secure, fireproof depository or duplicate records must be maintained
off site in a secure location and in a manner approved by the office;

(2) an appropriate official must be
designated to provide a student with copies of records or a transcript upon
request;

(3) an alternative method approved by the office
of complying with clauses (1) and (2) must be established if the school ceases
to exist; and

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(4)
if the school has no binding agreement approved by the office for preserving
student records, a continuous surety bond or an irrevocable letter of credit
issued by a financial institution must be filed with the office in an
amount not to exceed $20,000.The bond or
irrevocable letter of credit shall run to the state of Minnesota.In the event of a school closure, the
surety bond or irrevocable letter of credit must be used by the office to
retrieve, recover, maintain, digitize, and destroy academic records.

Subd. 13.Compliance
audit."Compliance
audit" means an audit of a school's compliance with federal requirements
related to its participation in federal Title IV student aid programs or other
federal grant programs performed under either Uniform Grant Guidance, including
predecessor Federal Circular A-133, or the United States Department of
Education's audit guide, Audits of Federal Student Financial Assistance
Programs at Participating Institutions and Institution Servicers.

Subd. 16.Audited
financial statements."Audited
financial statements" means the financial statements of an entity or
higher-level entity that have been examined by a certified public accountant or
an equivalent government agency for public entities that include (1) an auditor's
report, a statement of financial position, an income statement, a statement of
cash flows, and notes to the financial statements or (2) the required
equivalents for public entities as determined by the Financial Accounting
Standards Board, the Governmental Accounting Standards Board, or the Securities
and Exchange Commission.

Subd. 17.Review-level
engagement."Review-level
engagement" means a service performed by a certified public accountant
that provides limited assurance that there are no material modifications that
need to be made to an entity's financial statements in order for them to
conform to generally accepted accounting principles.Review-level engagement provides fewer
assurances than those reported under audited financial statements.

(iv) a current balance sheet,
income statement, and adequate supporting documentation, prepared and certified
by an independent public accountant or CPA;

(8) copies of all media advertising and
promotional literature and brochures or electronic display currently used or
reasonably expected to be used by the private career school;

(9) copies of all Minnesota enrollment
agreement forms and contract forms and all enrollment agreement forms and
contract forms used in Minnesota; and

(10) gross income earned in the preceding
year from student tuition, fees, and other required institutional charges,
unless the private career school files with the office a surety bond equal to
at least $250,000 as described in subdivision 6.

Subd. 6.Bond.(a) No license shall be issued to any
private career school which maintains, conducts, solicits for, or advertises
within the state of Minnesota any program, unless the applicant files with the
office a continuous corporate surety bond written by a company authorized to do
business in Minnesota conditioned upon the faithful performance of all
contracts and agreements with students made by the applicant.

(b)(1) The amount of the surety bond shall
be ten percent of the preceding year's grossnet income from
student tuition, fees, and other required institutional charges collected,
but in no event less than $10,000 nor greater than $250,000, except that
a private career school may deposit a greater amount at its own discretion.A private career school in each annual
application for licensure must compute the amount of the surety bond and verify
that the amount of the surety bond complies with this subdivision, unless
the private career school maintains a surety bond equal to at least $250,000.A private career school that operates at two
or more locations may combine grossnet income from student
tuition, fees, and other required institutional charges collected for
all locations for the purpose of determining the annual surety bond requirement.The grossnet tuition and fees
used to determine the amount of the surety bond required for a private career
school having a license for the sole purpose of recruiting students in
Minnesota shall be only that paid to the private career school by the students
recruited from Minnesota.

(2) A person required to obtain a private
career school license due to the use of "academy,"
"institute," "college," or "university" in its
name and which is also licensed by another state agency or board, except not
including those schools licensed exclusively in order to participate in state
grants or SELF loan financial aid programs, shall be required to provide a
school bond of $10,000.

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(c)
The bond shall run to the state of Minnesota and to any person who may have a
cause of action against the applicant arising at any time after the bond is
filed and before it is canceled for breach of any contract or agreement made by
the applicant with any student.The
aggregate liability of the surety for all breaches of the conditions of the
bond shall not exceed the principal sum deposited by the private career school
under paragraph (b).The surety of any
bond may cancel it upon giving 60 days' notice in writing to the office and shall
be relieved of liability for any breach of condition occurring after the
effective date of cancellation.

(d) In lieu of bond, the applicant may
deposit with the commissioner of management and budget a sum equal to the
amount of the required surety bond in cash, an irrevocable letter of credit
issued by a financial institution equal to the amount of the required surety
bond, or securities as may be legally purchased by savings banks or for trust
funds in an aggregate market value equal to the amount of the required surety
bond.

(e) Failure of a private career school to
post and maintain the required surety bond or deposit under paragraph (d) shallmay result in denial, suspension, or revocation of the school's license.

Subd. 12.Permanent
records.A private career school
licensed under sections 136A.82 to 136A.834 and located in Minnesota shall
maintain a permanent record for each student for 50 years from the last date of
the student's attendance.A private
career school licensed under this chapter and offering distance instruction to
a student located in Minnesota shall maintain a permanent record for each
Minnesota student for 50 years from the last date of the student's attendance.Records include school transcripts,
documents, and files containing student data about academic credits earned,
courses completed, grades awarded, degrees awarded, and periods of attendance.To preserve permanent records, a private
career school shall submit a plan that meets the following requirements:

(1) at least one copy of the records must be
held in a secure, fireproof depository;

(2) an appropriate official must be
designated to provide a student with copies of records or a transcript upon
request;

(3) an alternative method, approved by the
office, of complying with clauses (1) and (2) must be established if the
private career school ceases to exist; and

(4) a continuous surety bond or
irrevocable letter of credit issued by a financial institution must be
filed with the office in an amount not to exceed $20,000 if the private career
school has no binding agreement approved by the office, for preserving student
records.The bond or irrevocable
letter of credit shall run to the state of Minnesota.In the event of a school closure, the
surety bond or irrevocable letter of credit must be used by the office to
retrieve, recover, maintain, digitize, and destroy academic records.

Subd. 13.Private
career schools licensed by another state agency or board.A private career school required to
obtain a private career school license due to the use of "academy,"
"institute," "college," or "university" in its
name or licensed for the purpose of participating in state financial aid under
chapter 136A, and which is also licensed by another state agency or board shall
be required to satisfy only the requirements of subdivisions 4, clauses (1),
(2), (3), (5), (7), (8), and (10); 5; 6, paragraph (b), clause (2); 8,
clauses (1), (4), (7), (8), and (9); 9; 10, clause (13); and 12.If a school is licensed to participate in
state financial aid under this chapter, the school must follow the refund
policy in section 136A.827, even if that section conflicts with the refund
policy of the licensing agency or board.A distance education private career school located in another state, or
a school licensed to recruit Minnesota residents for attendance at a school outside
of this state, or a school licensed by another state agency as its primary
licensing body, may continue to use the school's name as permitted by its home
state or its primary licensing body.

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